The UK system for personal taxes is progressive.
This means that the more a person earns, the more tax they pay at a higher rate.
UK Tax Residence and Domicile
The first step in determining the amount of personal taxes a person pays in the UK is to determine their status in relation to UK tax residence and domicile as the rules relating to tax residence and domicile will determine the rate of tax a person pays on their income.
Personal taxes in the UK are mainly made up of personal income tax, capital gains tax and inheritance tax.
UK Capital Gains Tax
Capital gains tax in the UK is determined at differing rates. The rates are determined by the type of gain and in which tax bracket the gain falls into when added to other income.
The UK imposes taxes on the estate of a person who dies. These taxes are commonly referred to as an “inheritance tax”.
UK Remittance Laws
The UK has “remittance” laws.
These laws determine whether income earned abroad and brought into, or remitted into, the UK can be taxed.
In certain instances, remittance laws can apply to capital gains made by a person before they arrive in the UK.
A system of exemption from tax for the proportion of salary earnt whilst working overseas may apply.
This is known as “Overseas Work Day Relief”.
Our Central England ETeam member is a reputable and qualified tax professional who is ready to assist you with all your personal tax needs and tax planning when moving to Central London.
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