MPs to investigate benefits and drawbacks of tax reliefs in new inquiry
The Treasury Committee has today launched a new inquiry into tax reliefs. The inquiry will examine the tax reliefs available to individuals and businesses, and explore whether these provide benefits to the broader economy.
MPs on the cross-party Committee have issued a call for written evidence from interested parties, with a deadline of 19 September.
Commenting on the new inquiry, Rt. Hon. Mel Stride MP, Chair of the Treasury Committee, said:
“Tax reliefs can play an important role in promoting investment, creating employment, and generating growth. As a Committee, we are launching a new inquiry to investigate whether tax reliefs benefit the UK’s economy and if they provide good value for money for taxpayers. We are also interested in any problems they may cause for the tax system, and the scope for reform. We look forward to receiving evidence submissions on this important topic.”
The terms of reference (read them in full here) include:
- whether the current suite of tax reliefs provides value for money, and if, among other things, they impact employment, investment and growth in the UK;
- whether reliefs are being used in the way they were intended, and if they cause problems to the tax system, such as through tax evasion or avoidance;
- whether “cliff edges” in the structure of tax reliefs lead to problems for taxpayers, businesses or for the wider economy;
- particular keenness to receive international comparisons;
- proposals for the addition, removal or reform of reliefs.