FACTOID # 15: A mere 0.8% of West Virginians were born in a foreign country.
 
 Home   Encyclopedia   Statistics   States A-Z   Flags   Maps   FAQ   About 
   
 
WHAT'S NEW
 

SEARCH ALL

FACTS & STATISTICS    Advanced view

Search encyclopedia, statistics and forums:

 

 

(* = Graphable)

 

 


Encyclopedia > Taxation in the United Kingdom
Taxation in the United Kingdom

This article is part of the series:
Politics and government of
the United Kingdom
Image File history File links Flag_of_the_United_Kingdom. ... Politics of the United Kingdom of Great Britain and Northern Ireland take place in the framework of a constitutional monarchy in which the Prime Minister of the United Kingdom is the head of government. ...


Central government
taxation
HM Treasury
HM Revenue and Customs

Income tax ·  PAYE
VAT ·  National Insurance
Corporation tax
Inheritance tax ·  Stamp Duty
Capital gains tax ·  Excise tax
Motoring taxes
The new eastern entrance to HM Treasury HM Treasury, in full Her Majestys Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the UK Governments financial and economic policy. ... Part of the HMRC complex in Nottingham. ... UK Income Tax and National Insurance (2005–2006) UK Income Tax and National Insurance as a % of Salary (2005–2006) Income tax forms the bulk of revenues collected by the government. ... PAYE (or pay-as-you-earn) is a payroll deduction system for collecting income tax in the United Kingdom. ... vat can be a type of barrel used for storage. ... UK Income Tax and National Insurance (2005–2006) UK Income Tax and National Insurance as a % of Salary (2005–2006) National Insurance is a system of taxes, and related social security benefits, that has operated in the United Kingdom since its introduction in 1911, and wider extension by the government... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Corporation tax is a tax levied in the United Kingdom on the profits made by companies and associations that are resident for tax purposes, and on the profits of permanent establishments of non-UK resident... In the United Kingdom, Death Duty was first introduced as a tax on estates in England and Wales over a certain value from 1796, then called legacy, succession and estate duties. ... Stamp duty is a form of tax that is levied on documents. ... A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of an asset that was purchased at a lower price. ... Her Majestys Customs and Excise (HMCE) was, until April 2005, a department of the British Government in the UK. It was responsible for the collection of Value added tax (VAT), Customs Duties, Excise Duties, and other indirect taxes such as Air Passenger Duty, Climate Change Levy, Insurance Premium Tax... Motoring taxation in the United Kingdom comes in a variety of forms. ...


Local government taxation
Local government

Council Tax ·  Business rates
Rates There is no single system of local government in the United Kingdom. ... The Council Tax is the main form of local taxation in England, Scotland and Wales. ... Business rates are a United Kingdom tax charged to businesses and other occupiers of non-domestic property. ... Rates are a type of taxation system in the United Kingdom and elsewhere, such as New Zealand, historically used to fund local government. ...



Part of the Taxation series
 view  talk  edit  project

Taxation in the United Kingdom may involve payments to at least two different levels of government: local government and central government (HM Revenue & Customs). Local government is financed by grants from central government funds, business rates, council tax and increasingly from fees and charges such as those from on-street parking. Central government revenues are mainly income tax, national insurance contributions, value added tax, corporation tax and fuel duty. Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links Flag_of_Germany. ... Image File history File links Flag_of_Hong_Kong. ... Image File history File links Flag_of_India. ... Image File history File links Flag_of_Indonesia. ... Image File history File links Flag_of_New_Zealand. ... Image File history File links Flag_of_Ireland. ... Image File history File links Flag_of_Russia. ... Image File history File links Flag_of_Singapore. ... Image File history File links Flag_of_the_United_Kingdom. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Comparison of tax rates around the world is a difficult and somewhat subjective enterprise. ... This table lists OECD countries by total tax revenue as percentage of GDP (as of 2005). ... There is no single system of local government in the United Kingdom. ... Her Majestys Government, or when the Sovereign is male, His Majestys Government, abbreviated HMG or HM Government, is the formal title used by the Government of the United Kingdom. ... Her Majestys Revenue and Customs (HMRC) is a new department of the British Government created by the merger of the Inland Revenue and Her Majestys Customs and Excise which came into formal effect on 18 April 2005. ... Business rates are a United Kingdom tax charged to businesses and other occupiers of non-domestic property. ... The Council Tax is the main form of local taxation in England, Scotland and Wales. ... Vehicle clamping Vehicle removal Decriminalised Parking Enforcement (DPE) is the name given in the United Kingdom to the civil enforcement of car parking regulations. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        An income tax is a tax levied on the financial income... UK Income Tax and National Insurance (2005–2006) UK Income Tax and National Insurance as a % of Salary (2005–2006) National Insurance is a system of taxes, and related social security benefits, that has operated in the United Kingdom since its introduction in 1911, and wider extension by the government... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Value added tax (VAT), or goods and services tax (GST), is... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Corporation tax is a tax levied in the United Kingdom on the profits made by companies and associations that are resident for tax purposes, and on the profits of permanent establishments of non-UK resident... Hydrocarbon oil duty is the name given to the excise duty levied on oils (mainly road vehicle fuels) in the United Kingdom. ...

Contents

Residence and domicile

A pie chart showing the constituents of UK taxation receipts for the tax year 2004-2005.

UK source income is generally subject to UK taxation no matter the citizenship nor the place of residence of the individual nor the place of registration of the company. Image File history File links UK_taxes. ... Image File history File links UK_taxes. ... A pie chart is a circular chart divided into sectors, illustrating relative magnitudes or frequencies. ... “Citizen” redirects here. ...


For individuals this means the UK income tax liability of one who is neither resident nor ordinarily resident in the UK is limited to any tax deducted at source on UK income, together with tax on income from a trade or profession carried on through a permanent establishment in the UK and tax on rental income from UK real estate.


Individuals who are both resident and domiciled in the UK are additionally liable to taxation on their worldwide income and gains. For individuals resident but not domiciled in the UK, foreign income and gains are taxed on the remittance basis, that is to say, only income and gains remitted to the UK are taxed (for such people the UK is sometimes called a tax haven). A tax haven is a place where certain taxes are levied at a low rate or not at all. ...


Domicile here is a term with a technical meaning. Very roughly (and this is a considerable simplification) an individual is domiciled in the UK if it is his or her permanent home. In Conflict of Laws, domicile (termed domicil in the U.S.) is the basis of the choice of law rule operating in the characterisation framework to define a persons status, capacity and rights. ...


A company is resident in the UK if it is UK-incorporated or if its central management and control are in the UK.


Double taxation of non-UK income and gains is avoided by a number of bilateral tax treaties. Tax treaties exist between many countries on a bilateral basis to prevent double taxation (taxes levied twice on the same income, profit, capital gain, inheritance or other item). ...


See IR20 - Residents and non-residents.


Income tax

UK Income Tax and National Insurance (2005–2006)
UK Income Tax and National Insurance (2005–2006)
UK Income Tax and National Insurance as a % of Salary (2005–2006)
UK Income Tax and National Insurance as a % of Salary (2005–2006)
UK Central Government Expenditure (2007-2008)
UK Central Government Expenditure (2007-2008)

Income tax forms the bulk of revenues collected by the government. Each person has an income tax allowance, and income up to this amount in each tax year is free of tax for everyone. For 2007-08 the tax allowance for under 65s is £ 5,225.[1] Above this amount there are a number of tax bands - each taxed at a different rate: Image File history File links UK_Tax. ... Image File history File links UK_Tax. ... Image File history File links UK_Tax_(percent). ... Image File history File links UK_Tax_(percent). ... Image File history File links Size of this preview: 660 × 600 pixelsFull resolution (866 × 787 pixel, file size: 62 KB, MIME type: image/jpeg) // Pie chart of UK central government expenditure, cash projections, 2007-8. ... Image File history File links Size of this preview: 660 × 600 pixelsFull resolution (866 × 787 pixel, file size: 62 KB, MIME type: image/jpeg) // Pie chart of UK central government expenditure, cash projections, 2007-8. ... UK Income Tax and National Insurance (2005–2006) UK Income Tax and National Insurance as a % of Salary (2005–2006) Income tax forms the bulk of revenues collected by the government. ...

Rate Dividend Income Savings Income Other Income Band (above any personal allowance)
Starting rate 10% 10% 10% 0 - £2,230
Basic rate 10% 20% 22% £2,231 - £34,600
Higher rate 32.5% 40% 40% over £34,600

Figures for 2007-08.[1]


Note that these rates only apply to income within that tax band. Thus in 2007/08 someone with an income of £7,455 per year would only pay £223 in tax, as they pay nothing from their tax allowance (up to £5225 a year) and ten per-cent from the next £2,230 of income.


Savings income (for instance, interest received from investments, and/or capital gains) is taxed at a lower rate of 20% (instead of 22%) within the basic rate band, and at 40% above it (over £34,600 in 2007-08).


Income from share dividends is taxed at 10% up to the basic rate limit (£34,600) and at 32.5% above that. This article or section does not adequately cite its references or sources. ... It has been suggested that ex-dividend date be merged into this article or section. ...


ISAs

Everyone aged 16 or over can put up to £3,000 a year into a cash ISA (Individual Savings Account). Over-18s have more choice. They can either put £7,000 into a stock market ISA or split the money, putting £3,000 into a cash ISA and £4,000 into a stock market ISA. Cash ISAs pay tax-free interest. Stock market-based ISAs give protection from capital gains tax and, while dividends are subject to non-refundable deduction at source of the basic 10% tax, higher-rate taxpayers avoid paying an extra 22.5% tax on dividends above the basic rate threshold. Income from corporate bond ISAs is paid without deduction of tax. An Individual Savings Account (ISA) is a financial product available in the United Kingdom, designed for the purpose of investment and savings with a favourable tax status. ...



The taxpayer's income is assessed for tax according to a prescribed order, with income from employment using up the personal allowance and being taxed first, followed by unearned income (interest) and then dividends, with capital gains always being taxed as the top "slice".


Capital gains tax

Capital gains are subject to tax at the marginal rate of income tax (for individuals) or of corporation tax (for companies). In finance, a capital gain is profit that is realized from the sale of an asset that was previously purchased at a lower price. ... In the tax system and in economics, the marginal tax rate refers to the increase in ones tax obligation as ones taxable income rises: marginal tax rate = Δ(tax obligation)/Δ(taxable income) This can be measured either by looking at the published tax tables (to get the official marginal...


Capital gains for individuals are taxed slightly differently from those for companies:

  • The basic calculation for individuals (in very broad terms) is proceeds less cost; the gain is then subjected to taper relief (a percentage reduction which varies depending on how long the asset was held prior to its disposal, and whether the asset was a "business" asset or a "non-business" asset in the hands of the owner). Individuals also have a capital gains tax free amount or "annual exemption" (in 2006/07 this was £8,800, and in 2007/08 it is £9,200).[2]
  • For companies, the chargeable gain is calculated (again, in very broad terms) as proceeds less cost; however, instead of taper relief, companies are entitled to indexation allowance, which is calculated with reference to movements in the retail prices index (individuals are also entitled to indexation allowance prior to April 1998). Companies are not entitled to any annual exemption.

In economics, the Consumer Price Index (CPI, also retail price index) is a statistical measure of a weighted average of prices of a specified set of goods and services purchased by wage earners in urban areas. ...

The tax year

The Tax Year in the UK, which applies to income tax and other personal taxes, runs from 6 April in one year to 5 April the next (for income tax purposes). Hence the 2005-06 tax year runs from 6 April 2005 to 5 April 2006.


The odd dates are due to events in the mid-18th century. The English quarter days are traditionally used as the dates for collecting rents (on, for example, agricultural properties). The tax system was also based on a tax year ending on Lady Day (March 25). When the Gregorian calendar was adopted in the UK in September 1752 in place of the Julian calendar, the two were out of step by 11 days. However, it was felt unacceptable for the tax authorities to lose out on 11 days' tax revenues, so the start of the tax year was moved, firstly to 5 April and then, in 1800, to 6 April. In British and Irish tradition, the quarter days were the four dates on which servants were hired, and rents and rates were due. ... In the Christian calendar, Lady Day is the Feast of the Annunciation (25 March) and the first of the four traditional Irish Quarter days and English quarter days. ... is the 84th day of the year (85th in leap years) in the Gregorian calendar. ... The Gregorian calendar is the most widely used calendar in the world. ... 1752 was a leap year starting on Saturday (see link for calendar). ... The Julian calendar was introduced in 46 BC by Julius Caesar and came into force in 45 BC (709 ab urbe condita). ...


The tax year is sometimes also called the Fiscal Year. The Financial Year, used mainly for corporation tax purposes, runs from 1 April to 31 March (hence Financial Year 2005 runs from 1 April 2005 to 31 March 2006).


History

The income tax was first implemented in Britain by William Pitt the Younger in his budget of December 1798 to pay for weapons and equipment in preparation for the Napoleonic wars. Pitt's new graduated income tax began at a levy of 2d in the pound (0.8333%) on incomes over £60 and increased up to a maximum of 2s (10%) on incomes of over £200. Pitt hoped that the new income tax would raise £10 million, but actual receipts for 1799 totalled just over £6 million.[3] William Pitt the Younger (28 May 1759 – 23 January 1806) was a British politician of the late eighteenth and early nineteenth centuries. ... Year 1798 (MDCCXCVIII) was a common year starting on Monday (link will display the full calendar) of the Gregorian calendar (or a common year starting on Friday of the 11-day slower Julian calendar). ... Combatants Austria[1] Portugal Prussia[1] Russia[2] Sicily  Spain[3]  Sweden United Kingdom[4] French Empire Holland Italy Naples [5] Duchy of Warsaw Bavaria[6] Saxony[7] Denmark-Norway [8] Commanders Archduke Charles Prince Schwarzenberg Karl Mack von Leiberich João Francisco de Saldanha Oliveira e Daun Gebhard von... A progressive tax is a tax imposed so that the tax rate increases as the amount to which the rate is applied increases. ... Above: A variety of coins considered to be lower-value, including an Irish 2p piece and many US pennies. ... “GBP” redirects here. ... This article is about coinage. ...


Income tax was levied under five schedules—income not falling within those schedules was not taxed. The schedules were:

  • Schedule A (tax on income from UK land)
  • Schedule B (tax on commercial occupation of land)
  • Schedule C (tax on income from public securities)
  • Schedule D (tax on trading income, income from professions and vocations, interest, overseas income and casual income)
  • Schedule E (tax on employment income)

Later a sixth Schedule, Schedule F (tax on UK dividend income) was added.


Pitt's income tax was levied from 1799 to 1802, when it was abolished by Henry Addington during the Peace of Amiens. Addington had taken over as prime minister in 1801, after Pitt's resignation over Catholic Emancipation. The income tax was reintroduced by Addington in 1803 when hostilities recommenced, but it was again abolished in 1816, one year after the Battle of Waterloo. The UK income tax was reintroduced by Sir Robert Peel in the Income Tax Act 1842. Peel, as a Conservative, had opposed income tax in the 1841 general election, but a growing budget deficit required a new source of funds. The new income tax, based on Addington's model, was imposed on incomes above £150. Henry Addington, 1st Viscount Sidmouth (May 30, 1757 - February 15, 1844) was a British statesman, Prime Minister of the United Kingdom from 1801 to 1804. ... The Treaty of Amiens was signed on March 25, 1802 (Germinal 4, year X in the French Revolutionary Calendar) by Joseph Bonaparte and the Marquis Cornwallis as a Definitive Treaty of Peace between France and Britain. ... A prime minister is the most senior minister of a cabinet in the executive branch of government in a parliamentary system. ... Catholic Emancipation was a process in Great Britain and Ireland in the late 18th century and early 19th century which involved reducing and removing many of the restrictions on Roman Catholics which had been introduced by the Act of Uniformity, the Test Acts and the Penal Laws. ... Combatants First French Empire Seventh Coalition: United Kingdom Kingdom of Prussia Kingdom of the United Netherlands Kingdom of Hanover Duchy of Nassau Duchy of Brunswick Commanders Napoleon Bonaparte, Michel Ney Duke of Wellington, Gebhard von Blücher Prince William of Orange Strength 73,000 67,000 Coalition 60,000 Prussian... This article does not cite any references or sources. ... The Income Tax Act 1842 (citation 5 & 6 Vict c. ... The Conservative Party (officially the Conservative and Unionist Party) is the second largest political party in the United Kingdom in terms of sitting Members of Parliament (MPs), the largest in terms of public membership, and the oldest political party in the United Kingdom. ... A general election is an election in which all or most members of a given political body are up for election. ...


UK income tax has changed over the years. Originally it taxed a person's income regardless of who was beneficially entitled to that income, but now a person only owes tax on income to which he or she is beneficially entitled. Most companies were taken out of the income tax net in 1965 when corporation tax was introduced. Also the Schedules under which tax is levied have changed. Schedule B was abolished in 1988, Schedule C in 1996 and Schedule E in 2003, though the Schedular system and Schedules A, D and F still remain. The highest rate peaked in the Second World War at 99.25% and remained at about 95% till the late 1970s. [citation needed] Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Corporation tax is a tax levied in the United Kingdom on the profits made by companies and associations that are resident for tax purposes, and on the profits of permanent establishments of non-UK resident... The schedular system of taxation is the system of how the charge to United Kingdom corporation tax is applied. ...


In 1974 the top-rate of income tax increased to its highest rate since the war, 83%. This applied to incomes over £20,000, and combined with a 15% surcharge on 'un-earned' income (investments and dividends) could add to a 98% marginal rate of personal income tax. In 1974, just 750,000 people were eligible to pay the top-rate of income tax. [4] Margaret Thatcher, who favoured indirect taxation reduced personal income tax rates during the 1980s. [5] Margaret Hilda Thatcher, Baroness Thatcher, LG, OM, PC (née Roberts; born 13 October 1925) served as British Prime Minister from 1979 to 1990 and leader of the Conservative Party from 1975 until 1990, being the first (and, to date, only) woman to hold either post. ...


The Finance Act 2004 introduced an income tax regime known as "pre-owned asset tax" which aims to reduce the use of common methods of inheritance tax avoidance.[6] The Finance Act 2004 is a piece of United Kingdom legislation. ... The examples and perspective in this article or section may not represent a worldwide view. ...


National Insurance contributions

Main article: National Insurance

The second largest source of government revenues is National Insurance contributions (NIC), payable by employees, employers and the self-employed. Unlike income tax, Class 1 (non self-employed persons) NIC is paid between lower and upper thresholds, or between £82 and £630 per week for 2005-06.[7] A zero rate of NIC applies to earnings between the lower earnings limit of £82 per week and the earnings threshold of £94 per week (in 2005-06) to protect employees' contributory benefit entitlements. National Insurance is levied at 11% (that is, 11p in the £), but can be contracted-out for persons with a qualifying pension scheme with a reduction of 1.6%. There has also been the addition of a 1% rate on income above the upper threshold in recent years. Employers pay an additional 12.8% on earnings over the lower earnings threshold (£94 per week), but without the upper threshold, so total earnings are taxed at 12.8% per employee. UK Income Tax and National Insurance (2005–2006) UK Income Tax and National Insurance as a % of Salary (2005–2006) National Insurance is a system of taxes, and related social security benefits, that has operated in the United Kingdom since its introduction in 1911, and wider extension by the government... UK Income Tax and National Insurance (2005–2006) UK Income Tax and National Insurance as a % of Salary (2005–2006) National Insurance is a system of taxes, and related social security benefits, that has operated in the United Kingdom since its introduction in 1911, and wider extension by the government...


Employers are additionally liable to Class 1A NIC at 12.8% on most benefits-in-kind provided to employees which are subject to income tax in the hands of the employee, and to Class 1B NIC (also at 12.8%) on the value of the tax and on certain benefits paid via a "PAYE Settlement Agreement".


There are also separate arrangements for self-employed persons (who are normally liable to Class 2 flat rate NIC and Class 4 earnings-related NIC), married women, and voluntary sector workers.


Value added tax

The third largest source of government revenues is value added tax (VAT), charged at the standard rate of 17.5% on supplies of goods and services. It is therefore a tax on consumer expenditure. Certain goods and services are exempt from VAT, and others are subject to VAT at a lower rate of 5% (the reduced rate) or 0% ("zero-rated").[8] Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Value added tax (VAT), or goods and services tax (GST), is...


Corporation tax

The fourth largest source of government revenues is corporation tax, charged on the profits and chargeable gains of companies. The main rate is 30%, which is levied on taxable income above £1.5m. In 2005-06, income below this level was taxed at 0% and 19%,[9] but with marginal reliefs in between the bands. The 0% starting rate has been abolished with effect from 1 April 2006. Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Corporation tax is a tax levied in the United Kingdom on the profits made by companies and associations that are resident for tax purposes, and on the profits of permanent establishments of non-UK resident... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        Corporation tax is a tax levied in the United Kingdom on the profits made by companies and associations that are resident for tax purposes, and on the profits of permanent establishments of non-UK resident... This article or section does not cite any references or sources. ... In finance, a capital gain is profit that results from the appreciation of a capital asset over its purchase price. ... The term company may refer to a separate legal entity, as in English law, or may simply refer to a business, as is the common use in the United States. ...


There is also a Supplementary charge to Corporation Tax for companies involved in petroleum exploration (for example in the North Sea) which is levied at a rate of 20% for profits arising from 1 January 2006 (previously the rate was 10%). The North Sea is a sea of the Atlantic Ocean, located between the coasts of Norway and Denmark in the east, the coast of the British Isles in the west, and the German, Dutch, Belgian and French coasts in the south. ...


Excise duties

Excise duties are charged on, amongst other things, motor fuel, alcohol, tobacco, betting and vehicles. Look up Excise in Wiktionary, the free dictionary. ... Hydrocarbon oil duty is the name given to the excise duty levied on oils (mainly road vehicle fuels) in the United Kingdom. ... This article does not cite any references or sources. ... Shredded tobacco leaf for pipe smoking Tobacco can also be pressed into plugs and sliced into flakes Tobacco is an agricultural product processed from the fresh leaves of plants in genus Nicotiana. ... Gambling (or betting) is any behavior involving risking money or valuables (making a wager or placing a stake) on the outcome of a game, contest, or other event in which the outcome of that activity depends partially or totally upon chance or upon ones ability to do something. ... A UK vehicle licence (tax disc) In the United Kingdom, Vehicle Excise Duty (VED) (often known as road tax, although it is not hypothecated for spending on roads, and before 1936 as road fund licence) is an annual tax on the use of motor vehicles on the public roads. ...


Stamp duty

Stamp duty is charged on the transfer of shares and certain securities at a rate of 0.5%. Modernised versions of stamp duty, stamp duty land tax and stamp duty reserve tax, are charged respectively on the transfer of real estate and shares and securities, at rates of up to 4% and 0.5% respectively.[10] Stamp duty is a form of tax that is levied on documents. ... This article or section does not adequately cite its references or sources. ... For security (collateral), the legal right given to a creditor by a borrower, see security interest A security is a fungible, negotiable interest representing financial value. ... Stamp duty is a form of tax that is levied on documents. ... Stamp duty is a form of tax that is levied on documents. ... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ...


Inheritance tax

Inheritance tax is levied on "transfers of value", meaning: In the United Kingdom, Death Duty was first introduced as a tax on estates in England and Wales over a certain value from 1796, then called legacy, succession and estate duties. ... The examples and perspective in this article or section may not represent a worldwide view. ...

  1. the estates of deceased persons;
  2. gifts made within seven years of death (known as Potentially Exempt Transfers or "PETs");
  3. "lifetime chargeable transfers", meaning transfers into certain types of trust. See Taxation of trusts (United Kingdom). Legislation announced in the 2006 budget but not yet enacted will extend this category to many more trusts than previously.

The first slice of cumulative transfers of value (known as the "nil rate band") is free of tax. This threshold is currently set at £300,000 (tax year 2007-08)[11] and, although it is raised annually, it has recently failed to keep up with house price inflation with the result that some 6 million households currently fall within the scope of inheritance tax. Over this threshold the rate is 40% on death. Any inheritance tax must be paid by the executors or administrators of the estate (the burden falling upon the beneficiaries) before probate is granted. The taxation of trusts in the United Kingdom is governed by a different set of principles to those tax laws which apply to individuals or companies. ... Probate is the legal process of settling the estate of a deceased person; specifically, resolving all claims and distributing the decedents property. ...


Transfers of value between UK-domiciled spouses are exempt from tax.


Gifts made more than seven years prior to death are not taxed; if they are made between three and seven years before death a tapered inheritance tax rate applies. There are some important exceptions to this treatment: the most important is the "reservation of benefit rule", which says that a gift is ineffective for inheritance tax purposes if the giver benefits from the asset in any way after the gift (for example, by gifting a house but continuing to live in it).


Motoring taxation

Motoring taxes include: fuel duty (which itself also attracts VAT), and vehicle excise duty. Other fees and charges include the London congestion charge, various statutory fees including that for the compulsory vehicle test and that for vehicle registration, and in some areas on-street parking (as well as associated charges for violations). Motoring taxation in the United Kingdom comes in a variety of forms. ... Hydrocarbon oil duty is the name given to the excise duty levied on oils (mainly road vehicle fuels) in the United Kingdom. ... A UK vehicle licence (tax disc) In the United Kingdom, Vehicle Excise Duty (VED) (often known as road tax, although it is not hypothecated for spending on roads, and before 1936 as road fund licence) is an annual tax on the use of motor vehicles on the public roads. ... The white-on-red C marks all entrances to the congestion charge zone although in some areas the charge zone is poorly signed, and accidental journeys into the zone can occur The London congestion charge is a fee for some motorists entering the Central London area. ... MOT test, or just MOT (pronounced by spelling out the letters) is a mandatory annual test of safety and roadworthiness aspects of vehicles over a certain age in the United Kingdom. ... The Vehicle first registration fee is the fee charged by the Government of the United Kingdom to register a vehicle for the first time with the DVLA. In 2006 the applicable fee is £38. ...


Business rates

Main article: Business rates

Business rates is the commonly used name of non-domestic rates, a United Kingdom rate or tax charged to occupiers of non-domestic property. Business rates were introduced in England and Wales in 1990, and are a modernised version of a system of rating that dates back to the Elizabethan Poor Law of 1601. As such, business rates retain many previous features from, and follow some case law of, older forms of rating. Business rates are a United Kingdom tax charged to businesses and other occupiers of non-domestic property. ... Rates are a type of taxation system in the United Kingdom and elsewhere, such as New Zealand, historically used to fund local government. ... “Taxes” redirects here. ... The Poor Law Act 1601 was also known as the Elizabethan Poor Law, 43rd Elizabeth[1] or Old Poor Law after the passing of the Poor Law Amendment Act in 1834. ...


Business rates form part of the funding for local authorities, and are collected by them, but rather than receipts being retained directly they are pooled centrally and then redistributed. In 2005/06, £19.9 billion was collected in business rates, representing 4.35% of the total UK tax income.[12] Local governments are administrative offices of an area smaller than a state. ...


Business rates are a property tax, where each non-domestic property is assessed with a rateable value, expressed in pounds. The rateable value broadly represents the annual rent the property could have been let for on a particular valuation date according to a set of assumptions. The actual bill payable is then calculated using a multiplier set by central government, and applying any reliefs.[13] Property tax, millage tax is an ad valorem tax that an owner of real estate or other property pays on the value of the property being taxed. ... For details of notes and coins, see British coinage and British banknotes. ...


See also

UK related

Local taxation The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty. ... In the UK, Her Majestys Customs and Excise is a department of the British Government. ... Her Majestys Revenue and Customs (HMRC) is a new department of the British Government created by the merger of the Inland Revenue and Her Majestys Customs and Excise which came into formal effect on 18 April 2005. ... The Chartered Institute of Taxation is the leading body for tax professionals in the United Kingdom. ... There are very few or no other articles that link to this one. ... The Scottish Parliament has the power to vary income tax by +/- 3p in every pound. ...

General category Business rates are a United Kingdom tax charged to businesses and other occupiers of non-domestic property. ... The Council Tax is the main form of local taxation in England, Scotland and Wales. ... The Scottish Executive plans to bring forward legislation to replace the council tax with a local income tax (LIT), as part of the funding for Scottish local authorities. ...

“Taxes” redirects here. ... A tax haven is a place where certain taxes are levied at a low rate or not at all. ... Tax law is the codified system of laws that describes government levies on economic transactions, commonly called taxes. ...

Notes

  1. ^
  2. ^ Rates and Allowances - Capital Gains. HM Revenue & Customs. Retrieved on 2007-01-24.
  3. ^ A tax to beat Napoleon. HM Revenue & Customs. Retrieved on 2007-01-24.
  4. ^ IFS: Long-Term trends in British Taxation and Spending
  5. ^ Thatcher Economics
  6. ^ REV BN 40: Tax Treatment Of Pre-Owned Assets
  7. ^ Rates and Allowances - National Insurance Contributions. HM Revenue & Customs. Retrieved on 2007-01-24.
  8. ^ Introduction to VAT. HM Revenue & Customs. Retrieved on 2007-01-24.
  9. ^ Rates and Allowances -Corporation Tax. HM Revenue & Customs. Retrieved on 2007-01-24.
  10. ^ Stamp Duty Land Tax Rates From 23/03/06 including archived Budget and Finance Bill information. HM Revenue & Customs (2006-03-23). Retrieved on 2007-01-24.
  11. ^ Rates and Allowances - Inheritance tax. HM Revenue & Customs. Retrieved on 2007-01-24.
  12. ^ Public Finances Databank (see section C4), HM Treasury, retrieved 26 March 2007. Percentage based on Net taxes & NICs conts.
  13. ^ The rates bill - How is it calculated?, mybusinessrates.gov.uk

Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 24th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 24th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 24th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 24th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 24th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 24th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... is the 24th day of the year in the Gregorian calendar. ...

References

  • Taxation of Foreign Domiciliaries, by James Kessler QC, Key Haven Publications, 5th edition (2005) - discusses taxation of individuals who are UK resident but not UK domiciled.

External links

  • Guide to personal taxation, from UK government site Directgov
  • Yahoo tax, UK tax portal
  • Tax World, wide ranging UK tax portal

  Results from FactBites:
 
TAXATION IN THE UNITED KINGDOM : Encyclopedia Entry (1595 words)
Taxation in the United Kingdom may involve payments to at least two different levels of government: local government and central government (HM Revenue and Customs).
UK source income is generally subject to UK taxation no matter the citizenship nor the place of residence of the individual nor the place of registration of the company.
For individuals resident but not domiciled in the UK, foreign income and gains are taxed on the remittance basis, that is to say, only income and gains remitted to the UK are taxed (for such people the UK is sometimes called a tax haven).
THETAXGLOSSARY.COM: Taxation In the United Kingdom (1038 words)
The Eady Levy was a tax on box office receipts in the United Kingdom, intended to support the British film industry, and named...
Individuals who are both resident and domiciled in the UK are additionally liable to taxation on their worldwide income and gains.
Taxation of Foreign Domiciliaries (James Kessler QC, 5th edition, 2005, Key Haven Publications) discusses taxation of individuals who are UK resident but not UK domiciled.
  More results at FactBites »

 
 

COMMENTARY     


Share your thoughts, questions and commentary here
Your name
Your comments

Want to know more?
Search encyclopedia, statistics and forums:

 


Press Releases |  Feeds | Contact
The Wikipedia article included on this page is licensed under the GFDL.
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m