PERSONAL TAXATION REPORT

Personal Taxation report



Personal Taxation report; the UK income tax implications

Gough Enterprises Ltd

Abstract

U.K income tax law has a significant impact on salaried class. This document outlines the formal description of the tax system between the tax rate table and facing the connection by the taxpayer. It said the operation of the tax system will significantly clarify, if it is described as the tax rate schedule on its clear.

The UK tax implication; tax structure

In 1978-79, 25% of the starting rate, basic rate of 33% and high interest rates from 40-83%. In addition, 15% of the investment income surcharge applies to those with a high return on investment, in the highest income tax rate of 98%. 2008 Pre-Budget Report announced the income tax in the highest income tax rate structure of those very complicated. By the personal allowance for 2010-11 will be withdrawn in two stages from more than 10 million pounds of revenue, and create two income tax burdens will increase by 60 pence per pound of additional revenue short-band, and more from the 2011-12 £ 150,000 of income, the tax rate of 45% tax rate.

The main outline structure of taxable income is from employment, self-employment income and unincorporated business income, job seekers allowance, retirement pension, property, banking, construction, social benefits and share dividend income. Most means-tested social security benefits, income tax is not easy. UK personal income tax rate for 2010-2011 is ranging from 10% -50%.

Personal Income Tax

The Income Tax of Individuals or personal income tax is a tax personal, progressive and directly levied on the income obtained in a calendar year by individual residents. There are two major personal income taxes in the UK: income tax and national insurance contributions. Capital gains tax, which has become a separate income tax rate from the existing since 1965, can also be seen as personal income tax, but it provides little income compared with income and national insurance taxes.

Personal annual rate of taxation for U.K (2010-2011)

Income (GBP) Tax rate in Percentage

1-2,440 10 %

1-37,400 20 %

37,401-150,000 40 %

Over 150,000 50 %

Other generalizations

Savings rate of 10% related to income of up to 2,440 pounds.

Dividend income is less than £ 37,400; the tax rate is 10% for £ 37,400,

Dividend income tax rate of 150,000 pounds is 32.5%.

Dividend income over 150,000 pounds of the tax rate is 42.5%

The Government has announced that the personal allowance for 2010-11 will be reduced by 50 pence more than half the 100,000 pounds, until the income of pounds have been withdrawn, while the remaining half of the allowance will be canceled (at the same speed) once the income More than one hundred and forty thousand pounds

Taxable income is subject to different tax rates, the band, it is different. The first pound of taxable income (i.e. income above the personal allowance) 34800 is the basic tax rate by 20%. Thirty-four thousand eight hundred pounds more than the basic rate limit the amount of taxable income is subject to higher rates of ...