Grant Thornton calls for overhaul of tax relief system in Budget
Ahead of the Autumn Budget, a financial advisory firm in Norwich is calling for a fundamental review of the UK tax regime to ensure its fitness for a post-Brexit world.
Analysis by Grant Thornton suggests an overhaul of the UK’s 1,100 tax reliefs – estimated to cost more than £400bn a year – could have a positive impact local and national economic growth and make the system harder to abuse.
Darren Bear, of Grant Thornton’s Norwich office, said: “Tax reliefs are designed to maintain competitiveness, redistribute wealth and influence good, long term, behaviour. In principal, they should be of great benefit but as with the rest of the UK tax system, they are shrouded in complexity. For tax reliefs to be used efficiently and for their intended purpose, government needs to outline its plans for the UK economy, the behaviours it wants to encourage and the sectors it wants to grow – then create reliefs to support this.”