Personal Tax in the U.K.

Overview by
Tax Base For Residents and Non-Residents
Where an individual is resident, ordinarily resident and domiciled in the UK, that person is subject to UK income tax and capital gains tax on worldwide income and gains, whether or not received in the UK (subject to the provisions of an applicable double-tax treaty). There is a limited exception for seafarers. Not all UK residents are subject to worldwide taxation. For additional information, consult the PKf Tax Guide.

Tax Rate

Income tax rate for 2010-2011 Progressive rate from 10% to 40%
GBP 0 - 2,440 10%
GBP 2,441 - 37,400 20%
Above GBP 37,400 40%
Allowable Deductions and Tax Credit
Personal allowances.
Expenses incurred in the performance of professional duties.
Some share-incentive, pension and savings schemes may confer tax advantages.
Special Expatriate Tax Regime
Consult HM Revenue & Customs to know the most recent rules.
Capital Tax Rate
Inheritance tax (IHT): generally this only applies upon death, to the value of the estate and gifts made within the previous seven years subject to a reduction for gifts made between four and seven years before death. In these cases, the amount in excess of the upper limit is subject to IHT at 40%.

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  • Expatriate Tax Matters in the UK

    This article examines what businesses and individuals need to consider when working in the UK as an expatriate, including important compliance issues and opportunities for tax savings.

    BRAL Limited on 9 Apr 2010 related to Personal Tax in the United Kingdom

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