Source · Select Committees · Treasury Committee
Twentieth Report - Tax Reliefs
Treasury Committee
HC 723
Published 26 July 2023
Recommendations
7
Accepted
Monitor maintained tax reliefs for abuse indicators, including external consultation on policy design
Recommendation
Tax reliefs have been abused. The most straightforward way to reduce opportunities for such abuse is to simplify the tax system. Where tax reliefs are maintained, we recommend the Government monitor them for indications of abuse as part of ongoing …
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Government Response Summary
The government states it already meets the recommendation, affirming it takes abuse seriously and actively monitors tax reliefs. It details existing processes including inter-departmental collaboration, seeking external consultation, continual monitoring of costs and take-up, and using various tools to address abuse.
HM Treasury
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Conclusions (1)
1
Conclusion
Accepted
Para 8
The tax system is too complicated. The huge and seemingly ever-expanding suite of tax reliefs is an important factor in that complexity. We welcome, and will monitor, the Treasury’s commitment to simplifying the tax system. That simplification cannot merely focus on proposed new policies.
Government Response Summary
The government affirms its existing commitment to simplifying the tax system, with the Chancellor taking personal responsibility and a mandate for officials to focus on both new and existing rules, stating that most reliefs work well and reviews are already underway where needed.