Weekly Tax Update - 9 November 2015

1.  General

1.1  Removal of Extra-statutory Concessions (ESCs)

HMRC has given notice that nine ESCs will be withdrawn from 1 or 6 April 2017 and that ESC 3.20 on insolvent business VAT will be given statutory effect. Each of the 10 ESCs is thought to be beyond the scope of HMRC's administrative discretion and therefore should be outside the ESC regime.

The nine ESCs to be withdrawn relate to income, corporation tax, excise duty and VAT:

• VAT - Para 9.8 Notice 708 – Apportionment of works of approved alterations to a qualifying protected building;
• A94 – Profits and losses of theatre backers (Angels);
• 69 – Building Societies: conversion to company status;
• C1 – Credit for underlying tax: dividends from trade investments in overseas companies;