Commentary

RCB/43/11 VAT—withdrawal of Extra Statutory Concession 3:16 – first time connection to the gas or electricity mains supply

Part V16 Forms and other HMRC material

RCB/43/11 VAT—withdrawal of Extra Statutory Concession 3:16 – first time connection to the gas or electricity mains supply

RCB/43/11 VAT—withdrawal of Extra Statutory Concession 3:16 – first time connection to the gas or electricity mains supply

Revenue & Customs Brief, Issue 43. 8 December 2011

Summary

On 13 December 2010, HM Revenue & Customs (HMRC) announced its intention to withdraw Extra Statutory Class Concession 3:16 relating to first time connection charges to the gas or electricity mains supply, with effect from 1 January 2012 (see Technical note on Withdrawal of extra statutory concessions (http://www.hmrc.gov.uk/menus/extra-stat-con-tn.pdf)).

The purpose of this Brief is to remind taxpayers about the forthcoming change and to clarify the effect of the timing of invoices and payments on whether the concession applies.

Readership

Gas and electricity suppliers, independent connection providers.

Action

To be aware of the withdrawal of the concession and the related time of supply issues.

Reason for withdrawal

The House of Lords' decision in the Wilkinson case clarified the scope of HMRC's administrative discretion to make concessions that depart from the strict statutory position. HMRC is reviewing its concessions in light of this decision. The majority can remain as they are, but those that go beyond the scope of HMRC's discretion will be either legislated to preserve their effect or withdrawn.

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