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Flashcards in Taxation Deck (15):
1

Revenues

Money coming in (it is not guaranteed)

2

Direct Taxes

Paid directly to the government
• Income tax
• Inheritance tax
• National Insurance contributions (Health Service)
• Capital gains tax (Business)
• Corporation tax

3

4 Indirect taxes

1) VAT
2) Stamp duty
3) Excise duty
4) Council tax

4

VAT

Value Added Tax
Paid or many goods at services at 20% of the price

5

Stamp duty

A tax paid on the purchase of property
* Low stamp duty can encourage people to buy houses

6

Excise duty

An extra tax placed on items like fuel, alcohol and tobacco

7

Council tax

A local tax raised by the Local Council based on the value of your property which helps to pay for

8

Why taxation?

1) Paying for government expenditure
2) Managing the economy
3) Changing behaviour - Discourage smoking by raising the excise duty on tobacco & alcohol

9

Income tax

A tax on money people receive from their earnings, savings, pensions and benefits. People who earn more pay more tax

10

National Insurance Contributions

A tax based on person's weekly income that is used to pay for benefits, state pensions

11

The amount you pay in National Insurance Contributions depends on:

1) How much you earn
2) Whether you're employed or self-employed

12

Who pay National Insurance Contributions

Anyone that's 16 and over and working in a job or working for yourself (self-employed)
You start paying NICs once your earning reach a certain level
£12 a week

13

Corporation tax

Tax on company profits
• Small companies with profits of less than £300,000 pay 21%

14

Inheritance tax

A tax on the value of the money, property or possession that someone leaves when they die unless the estate is being passed to husband/wife or civil partner.

15

Capital Gain tax (Business)

A tax on profits from investments such as stocks and shares