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<p>Of the £30.5bn referred to in figure 13, page 42 of HMRC’s accounts, the majority
(27.1bn) relates to personal tax credits (further details at page 190).</p><p> </p><p>The
methodology for calculating Personal Tax credits expenditure considers three main
elements;</p><ol><li>Actual expenditure arising from claims</li><li>Anticipated expenditure
for claims not yet finalised; and</li><li>Anticipated expenditure for doubtful or
challenging debt recovery cases.</li></ol><p> </p><p>The other significant element
of the £30.5bn expenditure relates to Corporation tax reliefs (£3.4bn). These values
are based on forecasts made at the Spring Budget 2017. The expenditure for other reliefs
are based on their take up which is refined and analysed on an annual basis.</p>
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