What next for tax reliefs?

The government uses tax incentives to encourage economic growth some of which reduce taxpayers’ liabilities and others provide funds to taxpayers to incentivise particular sectors or activities. The Treasury Committee’s report on tax reliefs in July 2023 highlighted the stark disparity between the scrutiny of government expenditure compared to the relative lack of scrutiny of tax reliefs’ effectiveness (despite their cost) as well as the inadequacies of data collection which may therefore impede tax policymaking and accountability.

On 31 January 2024 the National Audit Office (NAO) also published a value for money report Tax measures to encourage economic growth making recommendations for improving the evaluation of whether reliefs achieve their economic objectives are not inappropriately exploited or excessively costly.

Advisers play an important role in helping taxpayers correctly claim relevant tax reliefs and allowances. The government’s response to the Treasury Committee’s report...