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Britain taxes are levied by the British government on its citizens for satisfying all or part of its expenditures. In Britain, any individual who acquires income from the country must pay tax on that particular amount. Britain taxes are levied by the British government on its citizens for satisfying all or part of its expenditures.
A Historical Overview of Britain Taxes
In 1798, William Pit the Younger, first enforced income tax in Britain in his budget. The tax was levied for arranging war weapons in preparation for the Napoleonic wars. The income tax was enforced under five schedules ranging from Schedule A to Schedule E. Later, Schedule F was added as the sixth schedule. The income tax introduced by Pit was levied in Britain from 1799 to 1802.
Major Taxes in Britain
The Tax Year in the Britain (for income tax and personal tax purposes) at present, is from 6th April in one year to 5th April of the succeeding year. Some of the major taxes in Britain include, Income tax, capital gains tax, VAT (Value Added Tax), Corporation Tax, Motoring tax and Inheritance Tax.
Income tax in Britain is the personal tax enforced on annual income of an individual in Britain. The government of Britain collects the bulk of revenues in the form of income tax. Each individual in Britain gets income tax allowance depending upon the total income earned by the individual.
The capital gains taxes are imposed on the capital gains incurred by corporations and individuals. An investor attains capital gains when the capital goods are sold for a price higher than its purchase price.
In Britain, capital gains are taxed at a marginal rate of income tax or at a marginal rate of corporation tax. The details of some of the other major taxes in Britain are enlisted below:
Value Added Tax
Value Added Tax (VAT) is one of the major sources of revenues in Britain. VAT is levied in Britain at the standard rate of 17.5 percent on supplies of goods and services. VAT is a tax on the expenditure incurred by the consumer. Certain goods and services are granted exemption from VAT in Britain.
Corporation Tax
Corporation tax in Britain is the other major source of government revenues. It is earned by imposing charge on the profit of an establishment in Britain.
Inheritance Tax
The inheritance tax in Britain is imposed on “transfer of value”, which means the estates of deceased person. Inheritance tax is generally levied on the property that is passed to the successor.
Motoring Taxation
The motoring taxes in Britain consist of vehicle excise duty and fuel duty. The motoring taxes in Britain also include, London congestion charge and various statutory fees.
National Insurance Tax
National Insurance Tax is alternatively called National Insurance Contributions, which is payable to the health and social security system of Britain.
For more information on Britain Taxes please go through the following link:
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