Market leading insight for tax experts
View online issue

Eight concessions to be withdrawn, seven to be enacted

printer Mail

HMRC has identified eight extra-statutory concessions (ESCs) that need to be withdrawn, as part of the department’s review following a House of Lords decision that clarified the scope of its administrative discretion to make concessions.

Seven of the eight ESCs relate to VAT and deal with misunderstandings by VAT traders; connection to the gas or electricity mains supply; sail away boats; recharge of business rates at caravan sites; recharge of water and sewerage rates at caravan sites; zero-rating of motor vehicles adapted after initial supply; and zero-rating of parts and accessories for boats supplied for disabled people.

A corporation tax concession modifies the tax treatment of lump sums received by cemetery businesses for long-term maintenance of graves and monuments.

No ESC will be withdrawn retrospectively. Details are set out in a technical note.

HMRC has also launched a fourth ‘technical’ consultation, to ensure that draft legislation to give effect to seven more ESCs successfully preserves the current tax treatment. These ESCs include C16, relating to the dissolution of companies. Comments are invited by 7 March 2011.