Is the UK tax system effective in supporting disabled people?

Thesis

In 2020-21, some 22% of people in the UK reported a disability. The impacts of different impairments are hugely variable but for many disabled people – and their families – they may be profound, including limitations on the ability to work; and the need to meet considerable additional costs.

The UK benefits system is the most substantial source of public financial support for disabled people and their carers - alongside a range of public services. Separately, UK tax legislation contains nearly 40 reliefs spanning multiple taxes for eligible disabled taxpayers. The rationales for these reliefs vary: for example, some mitigate tax costs to assist with meeting ‘costs of disability’; others seek to eliminate discrimination; or facilitate an intended ‘after-tax’ result from a compensation claim or benefit payment.

Against this backcloth, this thesis seeks to answer the question ‘Is the UK tax system effective in supporting disabled people?’. In answering this question, the thesis does not seek to evaluate the nature and extent of general redistribution to disabled people: its focus is on the effectiveness of the existing range of tax reliefs, together with ease of tax compliance and administration for disabled people and those who support them. It draws upon comparative analysis with four other countries to identify areas where alternative – or additional reliefs – may be effective in achieving policy intent.

This thesis finds that the position is variable: many tax reliefs work smoothly and deliver meaningful results; others have limited effects, suffer from implementation issues, or are overly-complex. Whilst taxing authorities have made considerable progress in improving system access and compliance for disabled people, it seems that more can be done. The thesis makes a number of recommendations for modifications, further research, or the consideration of alternative reliefs to achieve overall policy intents.

Authors: Brice, P

• DOI: 10.5287/ora-rvgrkyykd
• Type of award: DPhil
• Level of award: Doctoral
• Awarding institution: University of Oxford
• Language: English
• Keywords: tax disability
• Subjects: Tax Disability