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Consultation on withdrawal of four extra-statutory concessions

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HMRC is gathering evidence until 7 March 2017 from interested parties about the potential impact of the withdrawal of four extra-statutory concessions with effect from April 2018. Three of these concessions concern VAT. The fourth concerns income/corporation tax. They are:

·         zero-rating of the central processor in a computer system (VAT Notice 701/7): allowing a central processor to be zero-rated if sold as part of a computer system with software installed to enable a disabled person to use it (these items now fall within existing legislation);

·         composite rate for computer systems sold to disabled people (VAT Notice 701/7): allowing traders supplying disabled people with complete computer systems containing significant specialist items for use by the disabled to use a composite VAT rate (HMRC considers this concession to be obsolete);

·         affiliation fees for profit-making commercial sports clubs (VAT Notice 701/45); allowing profit-making sports clubs to treat charges made to their members in respect of these fees as though they were disbursements, to align with the exemption for non-profit-making clubs (this concession now goes beyond HMRC’s discretion); and

·         income/corporation tax accounting periods of retail co-operative societies (C12): allowing retail co-operative societies to treat accounts comprising 12 months as one accounting period, even where accounts are drawn up quarterly or half-yearly (HMRC considers this concession is now obsolete).

See ‘Withdrawal of extra statutory concessions: technical note and call for evidence’ at

Issue: 1337
Categories: News