New inquiry into tax reliefs

The Treasury Select Committee (TSC) has launched a new inquiry into tax reliefs. The inquiry will examine the tax reliefs available to individuals and businesses, and explore whether these provide benefits to the broader economy.

MPs on the cross-party TSC would welcome views on whether the current range of tax reliefs provides value for money, and if, among other things, they impact employment, investment and growth in the UK. This is a wide-ranging review covering the tax-free income allowance through to business tax reliefs like capital allowances and the research and development (R&D) tax relief.

The TSC also calls for stakeholders to submit evidence on whether reliefs are being used in the way that Government and parliament intended, and if they cause problems to the tax system, such as through tax evasion or avoidance.

It also wants to know if ‘cliff edges’ in the structure of tax reliefs lead to problems for taxpayers, businesses or for the wider economy.

International comparisons are particularly welcomed, and thoughts are also requested on potential reforms to the system of tax reliefs, and proposals for the addition or removal of reliefs, as well as views on the current administration framework and means testing.

Here is the full call for evidence. The deadline for responding is 5pm on Friday 19 September 2022.

The information in this article is correct as of 23/08/2022.