|Taxation in the United Kingdom|
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In the United Kingdom, Inheritance Tax was first introduced as a tax on estates in England and Wales over a certain value from 1796, then called legacy, succession and estate duties. Taxation in the United Kingdom may involve payments to a minimum of two different levels of government The central government ( Her Majesty's Revenue and Customs) The politics of the United Kingdom of Great Britain and Northern Ireland takes place in the framework of a Constitutional monarchy, in which the Monarch is Head Taxation in the United Kingdom may involve payments to a minimum of two different levels of government The central government ( Her Majesty's Revenue and Customs) HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing Taxation in the United Kingdom may involve payments to a minimum of two different levels of government The central government ( Her Majesty's Revenue and Customs) For other uses see Paye (disambiguation PAYE ( Pay As You-Earn) is an amount collected by Employers on behalf of the government Value added tax ( VAT) or goods and services tax ( GST) is a consumption Tax levied on value added. National Insurance (NI is a system of taxes and related Social security benefits in the United Kingdom. Throughout this article the unqualified term "pound" and the £ symbol refer to the United Kingdom pound. In the United Kingdom, Stamp duty is a form of tax charged on instruments (that is written documents and requires a physical stamp to be attached to or impressed upon the A capital gains tax (abbreviated CGT) is a Tax charged on Capital gains the profit realized on the sale of a non-inventory Asset that was purchased Motoring Taxation in the United Kingdom comes in a variety of forms Taxation in the United Kingdom may involve payments to a minimum of two different levels of government The central government ( Her Majesty's Revenue and Customs) Council Tax is the system of local Taxation used in England, Scotland and Wales to part fund the services provided by local government in each Rates are a type of taxation system in the United Kingdom, and in places with systems deriving from the British one used to fund Local government. Business rates is the commonly used name of non-domestic rates, a Tax on the occupation of non-domestic property Personal income taxes See also Income tax in Australia Only the federal government imposes income taxes on individuals and this is the most significant source of Taxation in the British Virgin Islands is relatively simple by comparative standards photocopies of all of the tax laws of the British Virgin Islands would together amount to about 200 The level of Taxation in Canada is average among Organisation for Economic Co-operation and Development (OECD countries Taxes provide the most important revenue source for the Government of the People's Republic of China. See Government of Colombia for a wider perspective of Colombian government See Government of France for a wider perspective of French government Taxes in Germany —being a Federal Republic —are levied by the federation ( Bund) the States ( Länder) as well as the HK Inland Revenue Ordinance Cap112 is one of Hong Kong's Ordinances Taxes in India are levied by the Central Government and the State Governments This article ls with Taxation in Indonesia or pajak. Definitions "Pajak" in Indonesian for Tax and taxes whereas " Perpajakan The system of Taxation in Ireland is broadly similar to the system of Taxation in the United Kingdom. The Netherlands has a rich history dealing with taxation predating the Romanic period. Taxation in New Zealand is collected at a national level by the Inland Revenue Department (IRD on behalf of the Government of New Zealand. The Income tax in Peru is collected by the Superintendencia Nacional de Administración Tributaria, best known as SUNAT. The Russian Tax Code is the primary tax law for the Russian Federation. Individual income tax in Singapore forms part of two main sources of Income tax, the other being Corporate taxes on companies In Tanzania the Income Tax Act 2004 came into effect in July 2004 Taxation in the United Kingdom may involve payments to a minimum of two different levels of government The central government ( Her Majesty's Revenue and Customs) Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation Value added tax ( VAT) or goods and services tax ( GST) is a consumption Tax levied on value added. Comparison of Tax Rates around the world is a difficult and somewhat subjective enterprise This table lists countries by total 2005 Tax revenues (federal state and local as a percentage of GDP (Gross Domestic Product The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located History The Roman occupation of Britain was the first period in which the area of present-day England and Wales was administered as a single unit (with the exception Succession duty, in the English fiscal system "a Tax placed on the gratuitous acquisition of property which passes on the death of any person by means of a The value changed over time and the scope of estate duty was extended. By 1857 estates worth over £20 were taxable but duty was rarely collected on estates valued under £1500. Death duties were introduced in 1894, and for the next century were effective in breaking up large estates.
Estate duty was replaced in 1975 by Capital Transfer Tax, which was rebranded Inheritance Tax (IHT) in 1986. The nil-rate band is the value of an estate that is not subject to Inheritance tax in the United Kingdom. Partly due to the simple and widely-used methods which are available to avoid it, Inheritance Tax accounts for about 0. Tax avoidance is the legal utilization of the Tax regime to one's own advantage in order to reduce the amount of tax that is payable by means that are within the law 8% of government income, raising around £2 billion in 2001 and £3. 6 billion in 2006.
For the 2007/2008 tax year, the IHT rate is 0% on the first £300,000 (the "nil-rate band), and 40% on the rest of the value, at death, of an individual's tax estate. A fiscal year (or financial year, or sometimes budget year) is a period used for calculating annual ("yearly" Financial statements in Businesses The nil rate band rises annually; tax is only payable on the value of an estate above the nil rate band. For example, all other things being equal, an individual whose estate is £354,000 (the mean London house price in 2007) will pay IHT amounting to 0% of £300,000 plus 40% of £54,000 i. In Statistics, mean has two related meanings the Arithmetic mean (and is distinguished from the Geometric mean or Harmonic mean e £21,600 in all. This is 40% of the amount over the nil rate band, but in this example, 6. 1% of the total value of the estate. Those whose estates match the average nation-wide house price of £210,000 will pay zero IHT.
In the 2007 budget report the Chancellor of the Exchequer announced that the nil rate band is to rise to £350,000 by 2010. The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all Economic and Financial This is said to take into account the sharp rise in house prices in the United Kingdom over the past few years. , although in fact it represents an increase below the rate of house price inflation.
The tax estate includes:
There is also a charge on "lifetime chargeable transfers" into certain trusts (and a recalculation of those charges if the giver dies within seven years), and trusts themselves have an inheritance tax regime. See Taxation of trusts (United Kingdom). The Taxation of trusts in the United Kingdom is governed by a different set of principles to those tax laws which apply to individuals or
There are deductions for:
The Chancellor's Autumn Statement on 9 October 2007  announced that with immediate effect inheritance tax allowances (often referred to as the nil-rate band) were to be transferable between married couples and between civil partners. Events 768 - Carloman I and Charlemagne are crowned Kings of The Franks. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Thus, for the 2007/8 tax year, a married couple will in effect have an allowance of £600,000 against inheritance tax, whilst a single person's allowance remains at £300,000. The mechanism for this enhanced allowance is that on the death of the second spouse to die, the nil rate band for the second spouse is increased by the percentage of the nil rate band which was not used on the death of the first spouse to die.
For example, if in 2007/08 the first married spouse (or civil partner) to die were to leave £120,000 to their children and the rest of their estate to their spouse there would be no inheritance tax due at that time, and £180,000 or 60% of the nil rate band would be unused. Later, upon the second death the nil-rate band would be 160% of the allowance for a single person, so that if the surviving spouse also died in 2007/08 the first £480,000 (160% of £300,000) of the surviving spouse's estate would be exempt from inheritance tax. If the surviving spouse died in a later year when the nil rate band had reached £350,000, the first £560,000 (160% of £350,000) of the estate would be tax exempt.
This measure was also extended to existing widows, widowers and bereaved civil partners at 9 October 2007. WIDOW is a full-length Album recorded by British rock band Ritual released in 1983 WIDOW is a full-length Album recorded by British rock band Ritual released in 1983 Events 768 - Carloman I and Charlemagne are crowned Kings of The Franks. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. So if their late spouse or partner had not used all of their inheritance tax allowance at the time of their death, then the unused percentage of that allowance can now be added to the single person's allowance when the surviving spouse or partner dies. This applies however long ago the first spouse died, but there are special rules if the surviving spouse remarried.
In a judgement following an unsuccessful appeal to a 2006 decision by the European Court of Human Rights, it was held that the above does not apply to siblings living together. The European Court of Human Rights ( ECtHR) (Cour européenne des droits de l’homme in Strasbourg was established under the European Convention on Human Rights The crucial factor in such cases was determined to be the existence of a public undertaking, carrying with it a body of rights and obligations of a contractual nature, rather than the length or supportive nature of the relationship. 
Prior to this legislative change, the most common means of ensuring that both nil rate bands were used was called a nil band discretionary trust (now more properly known as NRB Relevant Property Trust*). This is an arrangement in both wills which says that whoever is the first to die leaves their nil band to a discretionary trust for the family, and not to the survivor. In Common law legal systems a trust is an arrangement whereby Property (including real tangible and intangible is managed by one person (or persons or organizations The survivor can still benefit from those assets if needed, but they are not part of that survivor's estate.
The Finance Act 2004 introduced a retrospective income tax regime known as pre-owned asset tax (POAT) which aims to reduce the use of common methods of IHT avoidance. The Finance Act 2004 is an Act of the United Kingdom Parliament prescribing changes to Excise Duties; Value Added Tax; Income Tax; Corporation 
In August 2006, former Cabinet minister Stephen Byers called for IHT to be abolished in an article in the Sunday Telegraph. In the Politics of the United Kingdom, the Cabinet is a formal body composed of the most senior government ministers chosen by the Prime Minister Stephen John Byers (born 13 April 1953) is a British Politician. The Sunday Telegraph is a British Broadsheet newspaper, founded in 1961 .
On 16 October 2006, Philip Johnston, writing in The Daily Telegraph had a scathing leading article against inheritance taxes and called for David Cameron, new leader of the Conservative Party (UK), to announce the demise of a catch-all inheritance tax as a main plank in that party's next manifesto. Events 456 - Magister militum Ricimer defeats the Emperor Avitus at Piacenza and becomes master of the western Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. For "The Daily Telegraph" in Australia see The Daily Telegraph (Australia. David William Donald Cameron (born 9 October 1966 is a British Politician and the current leader of the Conservative Party and Leader of Her Majesty's The Conservative Party (officially the Conservative and Unionist Party) is a Political party in the United Kingdom. .
Despite the, perhaps understandable, criticisms of taxes that occur when someone dies, it is accepted by many that it makes sense to tax people that can no longer use their money. In addition, it can have redistributive qualities, taking money away from those that can afford it and redistribute it. For example, The Economist published an article  in October 2007 which highlights this, but also acknowledges the political controversy it can cause, and suggests some ways to reform it. The Economist is an English-language weekly news and International affairs publication owned by The Economist Newspaper Ltd and edited in London