ESC D33

HMRC are consulting on legislation to replace the long-standing extra-statutory concession (ESC) D33.

The concession covers a number of circumstances in which a capital sum is received as compensation or damages for a right of action that is capital in the hands of the recipient and subject to capital gains tax under TCGA 1992, s 22.

It does not apply where a capital sum has been derived from any other type of asset including statutory rights or contractual rights.