The UK tax system is a complex mess of reliefs and anti-avoidance rules because politicians insist on using the tax rules to achieve goals other than raise money. A classic example is the new tax relief for the production of orchestral concerts (Finance Bill 2016, s 27).
Tax reliefs can play an important role in a tax system; to ensure profits are taxed fairly, to exempt small amounts from tax, or to define where the tax burden should not fall. The personal allowance an example of this last type of relief, as it removes those on low incomes from the burden of paying income tax, and simultaneously ensures that the tax paid by those with incomes over £100,000 is much greater.
The new orchestra relief falls into the category of tax reliefs whose purpose is to achieve a social obj...
About Rebecca Cave
Consulting tax editor for Accountingweb.co.uk. I also co-author several annual tax books for Bloomsbury Professional and write newsletters for other publishers.