The document summarizes taxation in the UK. It discusses the history of taxation in the UK dating back to 1203. It outlines the main direct taxes like income tax, corporation tax, and capital gains tax. It also discusses important indirect taxes like VAT and customs duties. The largest sources of tax revenue for the UK government are income tax, VAT, and national insurance contributions. The document then provides more details on income tax rates and brackets in the UK as well as the standard and reduced VAT rates applied to different goods and services. It concludes with an overview of the corporation tax rate which has been steadily decreasing in recent years.

1. TAXATION in UK
Performed by:
Sanjog Zimbar

2. Content
• Introduction
• History
• Direct Taxes
• Indirect Taxes
• Sources of UK government Tax revenue
• Income Tax in UK
• VAT in UK
• Corporation tax
• Exemption on Investment

3. Introduction
• The UK have a rich history going back thousands of
years.
• United Kingdom includes nations England, Scotland,
Wales and Northern Ireland.
• Theresa Mary May is the Prime Minister of the
United Kingdom from July, 2016 and Leader of the
Conservative Party.
• In UK there is indirect democracy.
• The history is full of invaders, wars, rulers.

4. History
• levied on persons or property subject to the government,
with the primary purpose of raising revenue.
• Tax system started by King John in 1203 as Export tax on
wool.
• In 1275 Wine tax, 1572 Poor law tax, 1667 Coal tax, 1692
Land tax,
• In May 1707 Window tax, 1798 Income tax introduced by
William pitt (1/120 on income over £60).
• In 1973 VAT is 10% good & services

5. Direct Taxes
It is levied on Income wealth and profit.
Direct Taxes Include;
• Income Tax
• Corporation Tax
• Capital Gains Tax
• National Insurance Contributions
• Stamp duty- Transfer of shares & securities @0.5 to 4
• Inheritance Tax
• Burden of direct tax cannot be passed.

6. Indirect Taxes
Indirect taxes are taxes on spending.
Indirect taxes includes;
• VAT
• Customs Duty
• Excise Duties- on fuel, cigarettes & alcohol
• Insurance Premium Tax
• Environmental taxes, including Air Passenger Duty
• Landfill Tax
Producers may be able to pass on indirect tax depending on
price elasticity of demand and supply.

7. Sources of UK Government Tax Revenue in 2015-2016
• Income Tax- £170 billion
• VAT - £ 133 billion
• National Insurance Contribution - £ 115 billion
• Other Taxes- £ 65 billion
• Excise duty - £ 47 billion
• Corporation Tax- £ 42 billion
• Council Tax - £ 28 billion
• Business rates - £ 28 billion

8. Composition of Revenue

9. Income Tax in UK
Basics of Income Tax-
• Tax free allowance per person = £10,600
• Taxable income= Gross income – Tax allowance
Tax rates at different levels
• £10,601 to £31,785 – marginal rate 20%
• £31,786 to £150,000 – marginal rate 40%
• Above £150,000 marginal rate 45%
Personal allowance is removed at a rate of 50% per
extra £1 earned on incomes over £100,000 a year.

10. Value Added Tax (VAT)
• Standard rate of VAT is 20% since 2011.
• Reduced rate 5% is applied to following items:
_ Domestic fuel and power, contraceptives, women’s sanitary
product, children’s car seat etc.
• VAT rate 0% on these items:
_Food, Construction of new buildings, domestic passenger
transport, cycle helmet etc.
• Exempt from VAT
_Private education, rent on domestic dwelling, health service,
postal service, small traders etc.

11. Corporation Tax
• From 1 April 2015 there is a single Corporation Tax
rate of 20% for non-ring fence profits.
• Government announced reduction to the
Corporation Tax main rate at regular interval of time;
• Summer budget 2015; 19% from 1 April 2017, 2018
and 2019, 18% for year2020.
• Budget 2016; 17% for year 2020.

12. Exemption on Investment
• UK government bonds.
• National saving & Investment
• Pension funds
• Venture capital trust
• Enterprise investment schemes
• Insurance bond

13. Summary
• Some successful attempts to reform the tax system in
recent years, but still many areas in need of reform.
• Debatable to what extent tax and benefit reforms are
responsible for increased inequality.
• Tax and benefit changes have improved the incentive
to work at all, but left effective marginal tax rates
unchanged overall.

14. THANK YOU…!