TaxPersonal Tax3 MARCH 2000 NEW PRACTIONERS BOOKLET PUBLISHED

3 MARCH 2000 NEW PRACTIONERS BOOKLET PUBLISHED

The Inland Revenue have recently published new editions of two booklets in their Practitioners Series: Extra Statutory Concessions IR1, and Statements of Practice IR131.

The Inland Revenue have recently published new editions of two booklets in their Practitioners Series: Extra Statutory Concessions IR1, and Statements of Practice IR131.

In ESC A71 (Company cars: family members and shared use), we have inserted the word “either” after “and” at the end of condition a. to remove any possible ambiguity.

ESCs C2 (loan and money societies) and C3 (holiday clubs and thrift funds) are being withdrawn with effect from April 2001. These two concessions allow a small number of savings bodies to pay tax under special arrangements on amounts paid to their members. The arrangements were originally designed as an administrative convenience but are no longer justified now that Advance Corporation Tax has been abolished. The concessions will continue to be available for accounting periods ending up to 31 March 2001 so that the bodies currently using them will have time to adjust to the correct statutory treatment.

DETAILS

1. The booklets now available update existing Extra-Statutory Concessions and Statements of Practice and include new ones published up to 31 August 1999. The new editions replace the editions published in November 1996 and supplements published in November 1997 and November 1998.

2. The booklets are available free of charge to personal callers at any Tax Enquiry Centre, Tax Office or the Inland Revenue Visitor Information Centre, South West Wing, Bush House, Strand, London WC2B 4RD.

NOTES FOR EDITORS

1. An extra-statutory concession is a relaxation which gives taxpayers a reduction in tax liability to which they would not be entitled under the strict letter of the law. Most concessions are made to deal with what are, on the whole, minor or transitory anomalies under the legislation and to meet cases of hardship at the margins of the code where a statutory remedy would be difficult to devise or would run to a length out of proportion to the intrinsic importance of the matter.

2. Inland Revenue extra-statutory concessions are of general application, but in a particular case there may be special circumstances which must be taken into account in considering the application of a concession. A concession will not be given in any case where an attempt is made to use it for tax avoidance.

3. Statements of Practice explain the Inland Revenue’s interpretation of legislation and the way the Department applies the law in practice. They do not affect a taxpayer’s right to argue for a different interpretation, if necessary in an appeal to the General or Special Commissioners.

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