Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans her Department has to review tax reliefs and their effectiveness.

Tax reliefs are an important feature of the UK tax system. Many tax reliefs help to define the scope of the tax and make sure that the tax system operates fairly while simplifying and reducing administrative burdens for businesses and individuals (structural reliefs). Others are aimed at encouraging certain behaviours or activities to support economic or social objectives (non-structural reliefs).

HMRC has invested significant resources in improving understanding of the cost and effectiveness of tax reliefs. Since 2019 it has produced:

• costings for 268 non-structural reliefs (of 344) and 82 structural reliefs;
• detailed analysis of the 38 largest non-structural reliefs that cost more than £500 million per year.

In addition, 24 evaluations covering 27 unique reliefs have been published since 2020.

HMRC’s approach to improving transparency around reliefs is proportionate, making the best use of resources.