Enactment of ESCs

The Enactment of Extra-Statutory Concessions Order, SI 2017/495, enacts three existing HMRC extra-statutory concessions with effect from 6 April 2017:

• ESC D40 excluding beneficiaries from CGT charge on participators in companies controlled by trustees of non-resident trusts;
• ESC F15 limiting denial of IHT potentially-exempt transfers involving woodlands subject to deferred estate duty charge; and
• ESC 3.20 preventing clawback of input VAT for supplies made prior to insolvency.

Following consultation on these changes in October 2014 and November 2015, HMRC published the order in draft in February 2017.