Third of UK 'tax gap' due to evasion or avoidance

clock

Almost a third of the UK 'tax gap' - the difference between what is owed to Her Majesty's Revenue & Customs (HMRC) and what is collected - is due to tax avoidance or evasion, according to the latest estimates.

Figures for 2010/11 have put the tax gap at £32bn, £1bn higher than that recorded in 2009/10 and 6.7% of total liabilities, HMRC said. A total of £9bn of this gap relates to tax avoidance and evasion. HMRC said tax is not collected for a number of reasons, including evasion and avoidance, as well as customer error, the hidden economy and criminal attacks. HMRC says tax avoidance "is not the same as legitimate tax planning".

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

Advisers see higher client demand as tax changes and rumours cause confusion

Advisers see higher client demand as tax changes and rumours cause confusion

See opportunity to provide ‘much-needed’ clarity

Isabel Baxter
clock 23 April 2025 • 2 min read
HMRC to raise £110m per year by cutting IHT relief on AIM shares

HMRC to raise £110m per year by cutting IHT relief on AIM shares

Will make gifting a more attractive option to investors

Isabel Baxter
clock 22 April 2025 • 2 min read
Advisers worry about pension and IHT changes as clients feel impact

Advisers worry about pension and IHT changes as clients feel impact

Advice landscape has ‘fundamentally shifted’

Isabel Baxter
clock 20 March 2025 • 2 min read