The Enactment of Extra-Statutory Concessions Order 2017
This Order is made under section 160 of the Finance Act 2008 (c. 9). It enacts three existing HMRC extra-statutory concessions (“ESCs”). The first is ESC F15 relating to transitional provisions for woodlands subject to a deferred estate duty charge. The second is ESC D40, which is concerned with the charge to capital gains tax in respect of gains made by trustees of a non-resident trust. ESC D40 ensures a beneficiary is not treated as a participator in a company controlled by the trustees merely because of its status as beneficiary. The third is ESC 3.20 concerning the disallowance of input VAT when consideration is not paid for a supply under section 26A of the Value Added Tax Act 1994 (c. 23) (“VATA”). ESC 3.20 ensures that this disallowance is disapplied when certain circumstances relating to insolvency exist.