The Office of Tax Simplification (OTS) has announced that it is carrying out a review into all tax reliefs, allowances and exemptions, for businesses and individuals, across all the taxes administered by HMRC. The Chancellor has asked the OTS to identify reliefs that should be simplified or repealed to help achieve a simpler tax system.

As the first step of the review process, the OTS has published a complete list of the reliefs and allowances in the UK system in addition to the approach that will be used for the review.

The 1,042 reliefs demonstrate the challenge facing the OTS which has also published details of the review criteria and methodology which will be used to evaluate the effectiveness and relevance of the reliefs, before reporting back later in the year.

The OTS will report to the Chancellor in advance of Budget 2011 with a view to identifying reliefs that should be simplified or repealed to help achieve a simpler tax system. The team will use the review criteria, together with their experience and expertise with an aim of making recommendations to the Chancellor on ways to simplify the tax system.

The newly published list is the first time all tax reliefs administered by HMRC have been compiled and made available in a single document which can be accessed at http://www.hm-treasury.gov.uk.

The OTS is now inviting comments and views on the list from those who use the reliefs.

Also published are details of the two Consultative Committees, one for the relief's project and one for the parallel small business tax review. The committees involve over 30 people, drawn from a wide variety of tax, law, business and accountancy firms, who will give views, input and support on the OTS's work as its recommendations are developed.