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The UK tax system offers more that 1,000 legitimate routes to a lower tax bill, according to newly released Treasury figures.
The Office of Tax Simplification (OTS) today published the first comprehensive list of the country’s 1,042 tax reliefs and allowances, and is now inviting comments and views from those who use them.
The OTS – which was set up earlier this year by the coalition government – has unveiled details of the review criteria and methodology that the office will use to evaluate the effectiveness and relevance of the reliefs, before reporting to the Chancellor later in the year.
The body’s tax director, John Whiting, said, ‘I am sure some people will be surprised by the sheer number of reliefs in today’s tax system. Many have a clear and highly valued benefit so, clearly, we would not seek to change those. Others, however, may simply no longer be used, or are too complex and burdensome to be properly effective, and it is these that I want my team to focus on.’
The Exchequer secretary to the Treasury, David Gauke, remarked, 'The sheer number of reliefs... highlights just how complex the UK’s tax system has become over the past decade. The details that have been published today are an important part of the work the OTS will continue to undertake in the coming months.'
Also published today were details of the two OTS consultative committees, one covering the reliefs project and the another centring on the review of small business tax. The committees involve over 30 individuals with expertise in business, tax, law and accountancy. They are expected to provide input and support on the work of the OTS as its recommendations are developed.
