Specialist Tax News

ESC A19 developments

This is an extra-statutory concession that sets out how HMRC may exercise its discretion not to collect income and capital gains tax which is lawfully payable, due to their delay in acting on relevant information in prescribed circumstances. This includes where we can identify that HMRC did not properly deal with information received and their delay results in an unexpected underpayment.

HMRC say they are keen to ensure that this concession continues to apply in appropriate cases and that taxpayers understand it, but alarm bells are ringing from a new consultation exercise in which they reckon there should be a requirement that taxpayers check their coding notices and query obvious errors. We are keeping abreast of the possible changes and will always attempt to use the concession for your benefit whenever possible.

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