UK Tax – Understand Which Taxes You May Have To Pay

The basic objective of Taxation in the United Kingdom is not very different from other countries. UK Tax is also directed directly to contribute to citizens’ welfare and better living. The only difference between the taxation categories in the UK are slightly different from the taxes in the USA.

Let us first look at the various taxes that currently exist in the UK :

· Income Tax – Any person who earns in the UK (whether or not his permanent home address is in the UK) is liable for paying Income Tax. There are various income slabs for the calculation of Income tax which will vary for different people on the incomes which they earn.

· Capital Gains Tax – This tax is calculated on the gains which a person earns on his assets. The Capital Gains Tax is also applicable to Corporations in the form of Corporation Tax.

· Value Added Tax – Also called as VAT, this tax is charged every time goods are supplied. This tax is charged on a customer. For example, should you wish to buy a bottle of wine, which is priced at 500 Pounds, you may need to pay 50 Pounds (Just as an example) as Value Added Tax.

· Motoring Taxes – Fuel duty and Vehicle excise duty are important categories in Motoring Taxes. Basically, if you wish to take a drive from London to Liverpool in your sedan, you may need to buy petrol to have enough fuel in your sedan. The price that you pay for the petrol is inclusive of VAT and Motoring Tax.

· Stamp duty – Should you wish to transfer shares which you hold to your relative, calculate the Stamp duty Taxes which are levied on transfer of shares.

Apart from these, there are many other categories of taxes which are currently existing in the UK like Inheritance Taxes, Corporation Tax and many more. The objective of having a common man pay so many taxes is not to burden him with a huge tax bill. In all likelihood, he may not feel the pinch so much, as most of these taxes are closely correlated to his daily routine.

The most important thing that a common man must realize quickly is that an economy will flourish only if it receives funds from its own countrymen. Taxation is one such way to keep a country’s economy on firm pedestals. UK Tax is one such example. Today, if UK is a member of G-8 Forum of Developed Nations, it is testimonial to the fact that its economy is firmly established. That directly permeates to the fact that people have been paying their taxes in different ways, on time.

Would you agree that developing nations could take a leaf out of the economy manual of the UK and start implementing it for their own benefit?

Property Tax