Extra-statutory
September 15, 2014Oh no! I hope I don’t get delayed finishing this piece until after the consultation into Legislating Extra Statutory Concession D33 closes! It closes at 3.30 today (because, reasons) so hurry along!
Actually that’s about the only comment I have on this consultation, sorry. It’s a sensible idea – in the general tidying up of extra-statutory concessions that followed on from the 2005 Wilkinson case they have reached D33. D33 was a sensible way around the possibility of a capital gains tax charge arising when someone received a compensation payment. Basically you’d get an imaginary “cost” or “value” of the right to take action equal to the actual amount you received, so you wouldn’t pay CGT. There was a limit of half a million, after which you had to write to HMRC and ask nicely.
Now the limit is to be a million, and after that you pay CGT, but as the consultation points out, the courts will know that and, presumably, adjust the compensation accordingly.
Simplification that’s actually effective? Well done!
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