Resumo de Taxes In Uk 2 - dragonflysdance

VAT
It is indirect tax on consumer expenses. It is assessed on the increased value of goods at each point of the chain of production and distribution. In UK there are 3 rates of VAT ?basic that is 17, 5%, reduced 5% and a zero rate.
VAT is paid on most transactions that involve supplies of goods or services if they are:

supplies made in the United Kingdom (UK) or the Isle of Man
by a taxable person
in the course of a business and
are not specifically exempted or zero-rated
Supplies that are zero rated are:
? made outside the UK and Isle of Man or
? not made in the course of business

Capital gains tax
Capital gains tax (CGT) is paid to the Inland Revenue when an individual or company makes a profit by selling or transferring assets to someone else. It means that if you want to sell something valuable you can be presented with tax bill. You have to inform Inland Revenue of your disposal, otherwise you will have to pay huge penalties. For 2005/6 you can make ¢8.200 before tax is payable. Everyone has this allowance so a couple for example can make £16.400 before having to pay the tax.

Inheritance tax
This is the tax which despite the fact that affects only a handful of people still is the one which is the most often highly overpaid. (According to adviser?s body IFA Promotion it is overpaid by £1.4bn each year) In recent year, however, many people managed to avoid paying it (according to Gordon Brown 94% of estates avoided it). Recently Inheritance tax is gaining ground and now is concerning more and more people. It is due to the fact that prices of property are rising. Valuable homes which total asset exceeds inheritance threshold are common on the South of England. To avoid paying taxes on them, owners are leaving everything to their husband or wife. By this simple move they do not have to pay tax.
In budged for 2005 threshold up to which no tax is paid was risen to £300.000. Anything, however, that will be over it is taxed at 40%.
The money owed for the Inheritance tax has to be paid within 6 moths after the end of the month in which the person has died.
As far as gifts are concerned one can give up to £3.000 during a tax year, if it is not used ?it accumulates and can be used next year. Another type of gifts that are not taxable are wedding gifts that are up to £5.000 ( given to children) and maintenance payments to ex-partner and children. Anything given to charity is also free of tax. Other gifts made in 7 years before your death are subjected to inheritance tax. If donor dies within 3 years after the gift was made the recipient has to pay 40% tax on everything above threshold. Each year the amount is reduced by 1/5th and in 7th year becomes totally exempt.

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