11 Mar 2026
The government needs to significantly broaden its approach to supporting entrepreneurs through the tax system, says the Chartered Institute of Taxation (CIOT).
The institute warns that the current call for evidence is too narrowly focused on investor reliefs and risks overlooking the tax and administrative barriers faced by many small and growing businesses.
In its response to HM Treasury's call for evidence on tax support for entrepreneurs, the CIOT argues that growth is not primarily achieved through more capital investment, but by removing regulatory and administrative hurdles.
The CIOT recommends that the government pulls together existing evidence across a wider scope, for example from its Small Business Strategy inquiry and previous Office of Tax Simplification reviews, to examine how tax policy supports sole traders, small partnerships and owner-managed businesses throughout their lifecycle.
Pete Miller, chair of CIOT's Owner Managed Business Committee, said: 'Entrepreneurs come in all shapes and sizes — from local tradespeople to high-growth tech founders.
'The call for evidence is right to look at start-up investment reliefs, but it misses the bigger picture. For the UK to have a truly entrepreneurial economy, the tax system needs to work for all businesses with growth ambitions, not just those seeking venture capital.
'Simplification must be at the heart of any reforms. The current reliefs are often so complex that businesses need expensive specialist advice just to access them. That complexity is itself a barrier, and it erodes the effective value of the relief available.'