.png)
.png)
A second technical consultation has been launched by HMRC with the aim of ensuring that draft legislation preserves the current tax treatment under a number of extra-statutory concessions.
The Revenue is reviewing the concessions in light of the House of Lords’ decision in R v HM Commissioners of Inland Revenue ex p Wilkinson, which made clear that the scope of the taxman’s administrative discretion to make concessions that depart from the strict statutory position is not as wide as previously thought.
Most ESCs are expected to continue in their current form because they are within the scope of HMRC’s administrative discretion, but those that are not will put on to a legislative basis, as appropriate. Some may be withdrawn.
The concessions to be legislated by order under FA 2008, s 160 are:
- 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
- B47: Furnished lettings of dwelling houses - wear and tear of furniture
- 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
- Concessions to be legislated using other powers
- A61: Clergymen's heating and lighting etc. expenses (National Insurance element)
- Zero rating of nurses' prescriptions by pharmacists (VAT)
- GP dispensing (VAT)
Comments on the effectiveness of translating the tax effects of the ESCs listed above into legislation should submitted by 7 October to Richard Hopwood via email or post: HMRC Central Policy, Room 1/74, 100 Parliament Street, London SW1A 2BQ.
