Consultation outcome

Delivering a cap on income tax relief

This consultation was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This consultation has concluded

Download the full outcome

Detail of outcome

Summary of responses to the consultation document.

Original consultation

This consultation ran from to

Summary

Seeking views on a limit on currently uncapped income tax reliefs.

Documents

Delivering a cap on income tax relief: a technical consultation (PDF 318KB)

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Written Ministerial Statement (PDF 17KB)

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Consultation description

At Budget 2012 the Government announced a limit on currently uncapped income tax reliefs which will have effect from April 2013.

Tax reliefs exist for good reasons, to promote activities such as business investment, but it is unfair that reliefs can be used without limit to reduce tax liabilities. This measure will increase effective tax rates and help ensure that those with the highest incomes pay a fairer share.

The consultation document sets out the scope of the cap. The consultation invited comments on the implementation and delivery of the cap, including, in particular, responses to: how an individual’s income will be defined and calculated for the purposes of the cap; when the cap will apply; how reliefs will be ordered; and the operation of the cap through Income Tax Self Assessment (ITSA). The reliefs that will be capped are listed for information only.