Personal Income Tax  

The United Kingdom imposes income tax and capital gains tax on individuals.

Individuals are taxable persons if they are resident or ordinarily resident individuals and trusts, and non-resident individuals and trusts on their UK-source income.

Residence is determined by:

• 183 days' presence; or
• habitual visits to the UK extending over 4 consecutive years on an average of 91 days or more per tax year, leading to residence as from the fifth year.

A resident individual is taxable on his worldwide income

An individual's taxable income is calculated by first ascertaining his total income, which comprises income from all sources, after all allowable deductions from each source of income have been made, less certain other specified deductions. Personal allowances are then subtracted from this amount to arrive at the final figure of taxable income.

Personal Income Tax comprises:

0. Employment income (i.e. salaries, benefits)
0. Trading income for sole traders
0. Rental income
0. Savings income
0. Income from dividends
0. Capital Gains Tax
0. Inheritance Tax