HMRC has published a consultation document on the effect of withdrawing three of their extra-statutory concessions (ESCs), two on income tax and one on capital gains tax (CGT), for comment by 8 January 2015
Following the House of Lords’ decision in R v Inland Revenue Commissioners, ex parte Wilkinson [2005] BTC 281, which clarified the scope of HMRC’s administrative discretion to make concessions that depart from the strict statutory position, HMRC has reviewed the concessions and identified ESCs that are considered to be beyond the scope of HMRC’s discretion and need to be withdrawn.
The ESCs will be withdrawn with effect from 6 April 2016.
The consultation sets out HMRC’s interim assessment of the impact of the withdrawal of the following concessions:
- EIM 03002: Professional remuneration administrative practice;
- EIM 64120 Sports Testimonials; and
- ESC D45 – Capital Gains Tax: roll-over into depreciating assets.
HMRC wants to hear from any stakeholders or bodies who may have undertaken research in the area or represent significant numbers of those affected on the number and types of users of the tax reliefs.
The consultation document is available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/360090/141002_withdrawing_ESCs_con_doc_v3.0.pdf