UK Tax Archives - Economy Watch

The U.K. Budget: Challenging Osborne’s Claims about Taxes

Those with the broadest shoulders are bearing the greatest burden.

George Osborne, chancellor of the exchequer, in his budget speech on July 8.

The chancellor’s claim is a difficult one to test. First, we might argue over what he means “burden” and how we should measure it. Second, the budget included a huge number of measures, some of them shifting the burden one-way; others shifting it back (such as changes to working tax credits). This makes it difficult to come up with an overall assessment.

UK Cuts Income Taxes Again: Economists Ask Whether This Makes Financial Sense

The United Kingdom has been engaging in a surprising program that has raised the “personal allowance,” or amount one can earn before paying income taxes, to record highs. The result of this program has left nearly 4 million people out of the annual income tax cycle and acted as a tax break for 27 million. But, as the nation struggles with sluggish economic growth, economists wonder if this politically popular measure makes good financial sense.

Capital Gains Tax in UK

Taxation in the UK

The monetary charge enforced on an individual or any legal entity by the Government is called tax. Under the Central Government in UK there lies another non-ministerial department, named as Her Majesty’s Revenue and Customs. The responsibility of this department is to levy and collect both direct and indirect taxes.

Taxes include insurance premium tax, excise duties, climate change levy, value added tax, air passenger duty, customs duties, aggregate levy etc. The Central Government of the United Kingdom finances the local government by arranging several grants.

Different Types of Taxes in U.K.

Income Tax in U.K

Council Tax in U.K.

Council Tax in U.K was started in 1993 as the main form of the local taxation process. This tax was collected on the basis of the people’s residential property, and, the residents had to pay this tax to the councilor or local authority. The council tax contributes 25% to the local government revenue.