Bobby Dean MP proposes new law to tackle tax dodgers

Bobby Dean, Liberal Democrat MP for Carshalton and Wallington, has submitted the Tax Reliefs Evaluation Bill to Parliament. The Bill would require the Treasury assess tax reliefs for effectiveness and value for money.

Tax reliefs are designed to encourage certain types of investment or behaviour and can play an important role in supporting the economy. However, the growing number and complexity of reliefs has drawn criticism for creating loopholes that can be exploited by large businesses.

The UK currently has over 1,200 tax reliefs, yet only around 300 have ever been properly assessed. The National Audit Office estimates these reliefs cost the Treasury around £200 billion a year in lost tax receipts — almost equivalent to the budget of the NHS budget.

The Tax Reliefs Evaluation Bill seeks to establish a formal framework for evaluating tax reliefs and mandate the publication of costings and impact assessments for all tax reliefs.

Bobby Dean MP is a member of the Treasury Committee and has repeatedly raised the need for a review. Ahead of the bill’s introduction he set out his case in an op-ed published in the Daily Express.

Bobby Dean MP, said:
“The UK tax system is notoriously messy and complex. At a time when the Chancellor is scratching around the back of the sofa looking for change and trying to balance the books, it is important that the Treasury takes a proper look at its own spending and shuts down tax reliefs that aren’t fit for purpose.”