Live and kicking

RUMOURS HAVE RECENTLY surfaced in the tax gossip columns about extra-statutory concessions. It has been whispered that they might actually be unlawful. How can this be? They are not upstart Johnny-come-latelies on to the tax scene but venerable components of what we loosely regard as sources of UK tax law. Some were and remain of huge significance: divorce lawyers for example would find their job very much more difficult were it not for ESC D33 dealing with payments arising out of legal claims. Furthermore if these concessions are illegal what about other undertakings not to collect the strict amount of tax issued by HMRC e.g. flat rate expense allowances?
On the face of it extra-statutory concessions are odd beasts. Under our current constitutional arrangements Parliament makes the law and the executive applies it. By definition extra-statutory concessions seek to override statute law promulgated by...