Obsolete concessions to be withdrawn

HMRC is consulting on the impact of withdrawing four extra-statutory concessions. It considers them obsolete and intends to abolish them from April 2018.

Zero rating of central processor – Notice 701/7 (VAT) (para 9.2)

This concession 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. It has caused problems because of the use of the term ‘central processor’ which is considered to be outdated in view of technological advances.

Composite rate of VAT for computer systems – Notice 701/7 (VAT) (para 9.3)

This was intended to be used in conjunction only with the concession zero rating a central processor sold as part of a complete computer system package to help a disabled person to overcome communication problems.

Affiliation fees for sports clubs – Notice 701/45 (VAT) (para 3.6.2)

The puts profit-making commercial clubs...