On 10 January 2017, HMRC published a technical note and call for evidence on a proposal to withdraw four extra-statutory concessions (ESCs). Three of the ESCs concern VAT. The VAT ESCs that HMRC want to withdraw relate to the following:
• zero-rating of the central processor in a computer system which allows a central processor to be zero-rated if sold as part of a computer system with software installed to enable a disabled person to use it
• composite rate for computer systems sold to disabled people which allows a trader supplying disabled people with complete computer systems containing significant specialist items for use by the disabled to use a composite VAT rate
• affiliation fees for profit-making commercial sports clubs which allows profit-making sports clubs to treat charges made to their members in respect of these fees as though they were disbursements, to align with the exemption for non-profit-making clubs.
HMRC seeks to gather evidence from those who have relevant data about the potential impact of withdrawing these ESCs. The three VAT ESCs will be withdrawn from 1 April 2018.
Responses to the call for evidence are requested by 7 March 2017.
A copy of HMRC’s consultation document can be found here.