This chapter will assess the current state of the UK tax system, placing it in historical, international and theoretical context. It will start by outlining the evolution since 1979 of the size and composition of tax revenues in the UK and comparing this to developments in other countries. It will discuss what has happened to the design of the major taxes and compare this to worldwide trends in tax reform over this period. Finally, it will assess the major economic features of the UK tax system: where it stands in relation to a comprehensive income tax or a pure expenditure tax; its changing effect on the distributions of income and work incentives; and the effect of the UK’s relatively narrow VAT base. An annex will provide a detailed description of the current UK tax system.