Walking the POAT

ALLISON PLAGER presents extracts from a lengthy exchange of correspondence between the tax profession and HMRC on various issues concerning the pre-owned assets tax.

THE PRE-OWNED assets tax has not been an easy tax to assimilate as its interaction with existing arrangements has not always been clear despite HMRC guidance. Over the summer Emma Chamberlain and Chris Whitehouse asked a series of questions of HMRC trying to clarify various aspects of the charge. In addition they were involved in settling a COP 10 letter to HMRC on behalf of CIOT STEP and Low Income Tax Reform Group raising many other points of practice and principle. Although HMRC have been helpful in responding to queries the fact that so many areas (some quite key) were not apparent from the primary legislation itself is very worrying. Moreover some of the questions raised by the COP 10...