Full review of tax reliefs would create uncertainty, says government

The government recognises the concerns about tax reliefs the Treasury Committee raised in its report on the subject said financial secretary to the Treasury Victoria Atkins. Further it agrees with the focus on simplification of the tax system limiting abuse and ensuring tax reliefs continue to achieve their policy goals. However a full review of all tax reliefs would impose ‘significant uncertainty on the tax system putting revenue at risk and altering business behaviour while they waited for such a review to conclude’.

In a letter responding to the committee’s report Ms Atkins said ‘considerable activity and procedures’ are already currently in place which give effect to the committee’s aims and ‘going further in the manner suggested would not always be the best use of resource and also have unintended consequences - whether that be the time of...