Tax Allowances
The question
To ask the Chancellor of the Exchequer, whether she plans to audit and evaluate the cost and impact of all existing tax reliefs.
Answered by Dan Tomlinson
Tax reliefs are an important feature of the UK tax system. Structural reliefs ensure tax policy functions as intended, and non-structural reliefs are designed to incentivise specific activities. Many tax reliefs help to make sure that the tax system operates fairly while simplifying and reducing administrative burdens for businesses and individuals.
HMRC has invested significant resources in improving understanding of the cost and effectiveness of tax reliefs. Since 2019 it has produced:
- costings for 270 non-structural reliefs (of 340) and 82 structural reliefs;
- detailed analysis of the 40 largest non-structural reliefs.
In addition, 25 evaluations covering 30 unique reliefs have been published since 2020. HMRC’s approach to improving transparency around reliefs is proportionate, making the best use of resources.
The Government keeps all taxes under review as part of the policy making process and will reform reliefs where appropriate.
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