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Legal interpretation is a primary driver of the large business tax gap, accounting for around...

Conclusion
Legal interpretation is a primary driver of the large business tax gap, accounting for around 50%. This occurs when HMRC and a large business have different interpretations of the law, and therefore a different understanding of how much tax is due to HMRC.46 HMRC believes that this is partly due to the highly complex nature of the UK tax system, which makes it difficult for businesses to understand their tax obligations.47
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.1 yrs
Report published 10 Jul 2026