Consultation on the abolition of 36 tax reliefs

HM Treasury has opened Consultation on the abolition of 36 tax reliefs.  

A list of reliefs was published by the Office of Tax Simplification in March 2011. The proposal is to abolish 36 of them in 2012.The reliefs selected for removal are either little used or target the wrong taxpayer population.

For example, the Capital Allowances: Flat Conversion Allowance seems to have only been taken up by around 1,000 businesses since its introduction, and the relief for Late Night Taxis is seen as largely benefiting higher paid workers in London. 

The reliefs proposed for removal include: 

  1. Payments to mariners to be disregarded for Class 1 NICs
  2. Grants for giving up agricultural land
  3. Pool betting duty payments related to safety improvement at football grounds or for the arts
  4. Mineral royalties
  5. Cycle to work days - provision of meals
  6. Late night taxis
  7. Luncheon vouchers
  8. Pools payment for football ground improvements
  9. Pools payment for support for games
  10. 10. Disregard for certain apprentices and students coming to the UK
  11. Assistance in identifying lost or stolen credit cards
  12. Nationalisation schemes
  13. Tax reserve certificates issued by HM Treasury
  14. Payments for the benefit of family members
  15. Class 1A - Exemption for prescribed general earnings
  16. Class 4 - Allows deduction in next tax year of losses incurred in 89/90 or previous tax year where losses from income other than trade or profession or vocation
  17. Deeply discounted securities - incidental expenses
  18. Life assurance premium relief
  19. Life assurance premiums paid by employers under E-FRBS
  20. Capital allowances - flat conversion allowances
  21. Capital allowances - safety at sports grounds
  22. Certain leases granted by registered social landlords
  23. Disadvantaged area relief (Stamp duty)
  24. Exempt Instruments
  25. Partial relief for company acquisitions
  26. Shared ownership transactions
  27. Transfers to registered social landlords
  28. Visiting forces and allied headquarters
  29. Disadvantaged area relief (Stamp duty land tax)
  30. Angostura bitters
  31. Black beer
  32. Land remediation relief
  33. Compensation for mis-sold pensions
  34. Harbour authorities
  35. Harbour reorganisation schemes
  36. Transfers in relation to harbour reorganisation schemes

The Consultation on the abolition of 36 tax reliefs runs until 31 August 2011.