All tax systems include tax reliefs. Reliefs can help maintain the competitiveness of the tax system and governments can use tax reliefs as a mechanism to redistribute wealth, support economic growth and influence behaviour. Tax reliefs may also be used for practical purposes such as establishing the correct income and profit for tax purposes and making the tax system simpler to use.
HMRC and the Treasury share oversight of tax reliefs. The Treasury is responsible for strategic tax policy design and HMRC for delivering and maintain policy and the administration of the tax system.
This inquiry will examine the variety of tax reliefs used in the UK and how they are administered.