Corporation Tax: Tax Allowances
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of which corporate tax reliefs have the largest positive impact on economic growth, ranked by scale of impact.
Answered by James Murray
The government has committed to maintaining a range of generous investment incentives, including full expensing, R&D reliefs, and the Audio Visual Expenditure Credit.
While the government does not maintain a ranking of economic impact, we seek to regularly monitor and assess economic impacts and the independent OBR also publishes their assessments.
For example, the OBR's paper on the economic effects of full expensing sets out that they expect to increase business investment by £14bn over next five years.
Since 2020 HMRC have published 14 tax relief evaluations covering 19 different reliefs, and some of these evaluations cover economic impacts.
On 5th December HMRC published statistics covering the costs of non-structural and structural reliefs, this includes 46 costings that cover corporation tax reliefs.
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