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    Taxation in UK

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    luaybaz
    The document summarizes various taxes in the United Kingdom, including: - Income tax which has different rates for various types of income including dividends, savings, employment, and additional rates over £150,000. - Inheritance tax is levied on estates, gifts within 7 years of death, and lifetime transfers into trusts. - Council tax is based on property value and has various bands from A to H. - VAT of 20% is charged on goods and services. Excise duties are charged on items like fuel, alcohol, tobacco, and vehicles.

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    Taxation in UK

    Uploaded by

    luaybaz
    33 views15 pages
    The document summarizes various taxes in the United Kingdom, including: - Income tax which has different rates for various types of income including dividends, savings, employment, and additional rates over £150,000. - Inheritance tax is levied on estates, gifts within 7 years of death, and lifetime transfers into trusts. - Council tax is based on property value and has various bands from A to H. - VAT of 20% is charged on goods and services. Excise duties are charged on items like fuel, alcohol, tobacco, and vehicles.

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    The document summarizes various taxes in the United Kingdom, including: - Income tax which has different rates for various types of income including dividends, savings, employment, and additional rates over £150,000. - Inheritance tax is levied on estates, gifts within 7 years of death, and lifetime transfers into trusts. - Council tax is based on property value and has various bands from A to H. - VAT of 20% is charged on goods and services. Excise duties are charged on items like fuel, alcohol, tobacco, and vehicles.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    33 views15 pages

    Taxation in UK

    Uploaded by

    luaybaz
    The document summarizes various taxes in the United Kingdom, including: - Income tax which has different rates for various types of income including dividends, savings, employment, and additional rates over £150,000. - Inheritance tax is levied on estates, gifts within 7 years of death, and lifetime transfers into trusts. - Council tax is based on property value and has various bands from A to H. - VAT of 20% is charged on goods and services. Excise duties are charged on items like fuel, alcohol, tobacco, and vehicles.

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    Taxation in United Kingdoms

    Tax year in U.K

    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 2010-11 tax year
    ran from 6 April 2010 to 5 April 2011
    UK taxation receipts for the tax year 2008-2009

    29%
    4%

    5%

    5%

    9%

    19%
    15%
    Types of taxes :
    Income tax :

    Other income Band (above


    Dividend
    Rate Savings income (inc any personal
    income
    employment) allowance)
    £0 - £2440
    Lower rate N/A 10% N/A applies only if total income

    falls in this band

    Basic rate 10% 20% 20% £0 - £37,400


    Higher rate 32.5% 40% 40% over £37,400
    Additional rate 42.5% 50% 50% over £150,000
    Inheritance tax

    Inheritance tax is levied on "transfers of value",


    meaning:
    •the estates of deceased persons;
    •gifts made within seven years of death
    •"lifetime chargeable transfers", meaning transfers
    into certain types of trust.
    Council Tax
    The basis for the tax is residential property, with discounts for
    single people

    Band Value Ratio Ratio as % Average


    A up to £40,000 6/9 67% £845
    £40,001 to
    B 7/9 78% £986
    £52,000
    £52,001 to
    C 8/9 89% £1,127
    £68,000
    £68,001 to
    D 9/9 100% £1,268
    £88,000
    £88,001 to
    E 11/9 122% £1,550
    £120,000
    £120,001 to
    F 13/9 144% £1,832
    £160,000
    £160,001 to
    G 15/9 167% £2,113
    £320,000
    £320,001 and
    H 18/9 200% £2,536
    above
    Value Added Tax ( VAT )

    The third largest source of government revenues is


    value added tax (VAT), charged at 20% on supplies of
    goods and services. It is therefore a tax on consumer
    expenditure
    Excise duties

    Excise duties are charged on, amongst other


    things, motor fuel, alcohol, tobacco, betting and
    vehicles.
    Stamp Duties

    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 property and shares and
    securities, at rates of up to 4% and 0.5%
    respectively
    Motoring Tax

    Motoring taxes include: fuel duty (which itself also


    attracts VAT), and vehicle excise duty. Other fees and
    charges include the London congestion charge, and in
    some areas on-street parking (as well as associated
    charges for violations).
    Corporate Tax

    Corporation tax is a tax levied in the United


    Kingdom on the profits made by companies and
    on the profits of permanent establishments of
    non-UK resident companies and associations that
    trade in the EU. Due to tax competition this main
    tax was reduced to 28% and is expected to be
    reduced again to 26%
    National Insurance contributions

    National insurance contribution falls into classes


    depending on each employees' position and salary.
    This tax is also paid by the employer around 12% on
    each employee who earns over the lower earnings
    threshold.
    Capital Gains Tax

    A capital gain is a profit that results from


    investments into a capital asset, such as
    stocks, bonds or real estate. Capital gains are
    subject to tax at 18-28%.
    Exemptions
    Many holdings and income from them are exempt for
    "historical reasons". These include:

    •Special, low tax arrangements for the monarchy, such as the


    arrangement used by the British Royal Family to avoid
    inheritance taxation.
    •Reduced income tax for special classes of people, who claim
    to be resident in the UK but not "domiciled".
    •The income of charities is usually exempt from UK income
    tax.

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