Where a charge to capital gains tax has been deferred under the terms of a concession, HMRC has the power to assess the deferred gain for the chargeable period in which it would have become chargeable if relief had been given by statute1.
Concessions subject to provisions
The rules apply to a concession first published before 9 March 1999, or published on or after that date where it replaced an earlier concession which had the same or substantially the same effect2. The concession must also have been available generally to anyone falling within its terms3.
A concession is defined as including 'any practice, interpretation or other statement in the nature of a Concession'4. HMRC confirms that the rules are not restricted to concessions published in a formal extra-statutory concession; rather, they also apply to any statement of HMRC's position in, for example, HMRC's Capital Gains Manual provided that it is generally available to anyone falling within its terms. An agreement on a particular case that a certain tax treatment of a disposal was appropriate would not be covered, even if the agreement had a concessional element, because it would not be available generally5.
The concession must also provide the taxpayer with relief6. 'Relief' for these purposes is defined as any reduction in the chargeable gains for a chargeable period, and the amount of the benefit of that relief is the amount by which those gains are reduced7. Concessions which do not allow a capital