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HM Treasury: Delivering a cap on income tax relief

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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.

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