1. Many concessions are made to deal with
minor or transitory anomalies under the legislation. Others meet
cases of hardship at the margins of the tax code for which a legislative
remedy would be difficult to devise or would run to a length out
of proportion to the intrinsic importance of the matter. The Bill
does not therefore include concessions which are obsolete or have
very limited application. It also does not include concessions
which are too complicated to legislate, either because of complexity
within the concession itself or because of difficulties in fitting
various strands of the concession into the legislation in a coherent
2. The ESCs omitted on grounds of complexity
A4Travelling expenses of directors
and employees earning £8,500 a year or more.
A10Lump sums from overseas
A37Tax treatment of directors'
fees received by partnerships and other companies.
A61Clergymen's heating and
lighting, etc expenses.
A68Payments out of a discretionary
trust which are emoluments taxable under Schedule E.
A81Termination payments and
3. The ESCs omitted because they are obsolescent
or of very limited application are:
A44Education allowances under
Overseas Service Aid Scheme.
A49Widow's pension paid to
widow of Singapore nationality, resident in the United Kingdom,
whose husband was a United Kingdom national employed as a Public
Officer by the Government of Singapore.
A60Agricultural workers' board
4. Other ESCs omitted are:
A40Adoption allowances payable
under The Adoption Allowance Regulations 1991 and Section 51,
Adoption (Scotland) Act 1978:
As the allowances are sometimes paid by adoption
agencies (rather than by local or central government), this Bill
is not the right place to rewrite the concession. The Inland Revenue
view is that the allowances are chargeable to tax (if at all)
as "annual payments", under Schedule D Case III. So
the better place for the exemption seems to be the Exempt Income
Part of next rewrite Bill.
A55Arrears of foreign pension:
This cannot be rewritten until the main Schedule
D Case V rules are rewritten. This will be done in the next rewrite
A56Benefits in kind: the tax
treatment of accommodation in Scotland provided for employees.
provided by reason of employment.
These concessions both hang from the Inland
Revenue practice of taking the gross rateable value of provided
living accommodation as a proxy for the annual value in computing
the cash equivalent of the benefit of that accommodation. Since
the General Rate Act 1967 was repealed in 1988, the concept of
gross rateable value does not have any statutory definition and
so is a term that cannot be incorporated in this Bill.