Extra statutory concessions
HMRC have published their feedback to the responses received concerning the potential legislative replacement for 11 Extra Statutory Concessions (ESCs). This follows an earlier exercise which saw 17 ESCs receiving legislative effect from April 2009.
The change in status of ESCs stems from the House of Lords’ decision in “the Wilkinson case” in 2005 which made clear that the scope of HM Revenue & Customs to operate ESCs is not as wide as previously thought.
The latest consultation has resulted in a number of minor changes to the draft legislation. In addition one of the eleven ESCs has been withdrawn from the current tranche for further consideration. (B47: Furnished lettings of dwelling houses – wear and tear of furniture).
Statutory legislation will be laid before Parliament in due course to replace the following ESCs:
- A61: Clergymen’s heating and lighting etc expenses
- A68: Payments out of a discretionary trust which are taxable as employment income
- B10: Income of contemplative communities or of their members
- D26: Relief for exchanges of joint interests
- D44: Rebasing and indexation: shares derived from larger holdings held at 31 March 1982
- D50: Treatment of compensation
- Estimated Gift Aid donations by companies
- A61: Clergymen’s heating and lighting etc expenses; National Insurance element
- Zero rating of nurses’ prescriptions by pharmacists
- GP dispensing
In the meantime all eleven ESCs will continue to operate in their present form.