ADML4100 - Extra-statutory concessions: What an Extra-statutory concession (ESC) is, and ESCs and C&M discretion
What an Extra-statutory concession is:
The Commissioners of HMRC’s power of ‘collection and management’ (C&M) allows HMRC to balance collection of the taxes which Parliament has decreed shall be paid with the principles of good management. All ESCs are founded on this same managerial discretion of C&M. Essentially an ESC is a statement as to how that discretion will be exercised in relation to circumstances affecting a group of customers.
Extra-statutory concessions and collection and management discretion:
There is no statutory definition of an ESC, rather it is a term used by HMRC to describe certain concessions provided for under the Commissioners' power to exercise C&M discretion
When is a use of C&M an ESC?
- All ESCs are founded in C&M: the considerations that should go into making an ESC are the same considerations that should apply when deciding to use C&M.
- An ESC is the label given by HMRC to concessions which typically have a longer term or enduring impact, are published, can be claimed by and applied to any customer who meets the same criteria.
- Whereas other uses of C&M typically apply to single customers or defined groups and are more likely to be one off decisions or concessions of limited duration.