Tax

Taxes

List of UK Taxes

"The hardest thing to understand in the world is the income tax". Albert Einstein

Income Tax

How much Income Tax you pay in each tax year depends on:

how much of your income is above your Personal Allowance
how much of your income falls within each tax band

Some income is tax-free.

Tax on Savings

Most people can earn some interest from their savings without paying tax.

Your allowances for earning interest before you have to pay tax on it include:

your Personal Allowance
starting rate for savings
Personal Savings Allowance

You get these allowances each tax year. How much you get depends on your other income. The tax year runs from 6 April to 5 April the following year.

Capital Gains Tax

Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.

It’s the gain you make that’s taxed, not the amount of money you receive. For example, if you bought a painting for £5,000 and sold it later for £25,000, you’ve made a gain of £20,000 (£25,000 minus £5,000).

Some assets are tax-free. You also do not have to pay Capital Gains Tax if all your gains in a year are under your tax-free allowance.

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