The ATT invites comments on this consultation designed to to explore the option for a revised version of Extra-statutory Concession (ESC) A19. It is not intended to cover whether ESC A19 should exist or the scope of concessions, but rather how HMRC may be able to improve the clarity of this particular concession ensuring it continues to be applied appropriately.
Please send any comments to atttechnical [at] att.org.uk with 'ESC A19' in the title by 14 September 2012.
ESC A19 sets out how HMRC may exercise its discretion not to collect income and capital gains tax which is lawfully payable, due to HMRC's delay in acting on relevant information in prescribed circumstances. This includes where the taxpayer identifies that HMRC did not properly deal with information received and the HMRC delay is the cause of an underpayment. HMRC is keen to ensure that this concession continues to apply in appropriate cases and that taxpayers understand it.
Following extended discussion with representative bodies HMRC has concluded that a consultation on ESC A19 now will be an opportunity to:
(i) improve the clarity of ESC A19 so that it is more user-friendly and easily understood by taxpayers;
(ii) help HMRC bring greater objectivity to ESC A19; and,
(iii) help HMRC align ESC A19 with the HMRC Charter and ensure that it continues to be available in appropriate cases.
The consultation aims are to present and seek views on a revised version of ESC A19 which:
(i) introduces the concept of 'taxpayer responsibilities' in respect of ESC A19 claims against the recovery of underpaid income tax in line with the HMRC Charter; and,
(ii) removes reference to capital gains tax, on the basis that the requirement for individuals to self-assess for capital gains makes ESC A19 redundant.