The Office of Tax Simplification (OTS) has published its final report on tax reliefs. 155 of the 1,042 tax reliefs have been examined. Of these, the OTS has recommended that 54 remain unchanged, 37 be examined more closely, 17 be simplified/extended and 47 be abolished. The OTS found that harmonising NICs and income tax would help simplify the tax system, as would streamlining employee expenses and benefits. Some taxes (especially IHT and corporate capital gains) need an overall review. While there may be a few immediate Finance Bill 2011 clauses as a result of the review, for any significant changes we expect further consultation.
John Whiting, Director of the Office of Tax Simplification, reflects on the OTS’s recommendations
The Office of Tax Simplification (OTS) has published its final report on tax reliefs. 155 of the 1,042 tax reliefs have been examined. Of these, the OTS has recommended that 54 remain unchanged, 37 be examined more closely, 17 be simplified/extended and 47 be abolished. The OTS found that harmonising NICs and income tax would help simplify the tax system, as would streamlining employee expenses and benefits. Some taxes (especially IHT and corporate capital gains) need an overall review. While there may be a few immediate Finance Bill 2011 clauses as a result of the review, for any significant changes we expect further consultation.
John Whiting, Director of the Office of Tax Simplification, reflects on the OTS’s recommendations