UK Taxation Details Regarding the Individual Taxation.

Running head: UK TAXATION
UK TAXATION
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UK taxation1
Executive Summary
The report will explain about the UK taxation details regarding the individual taxation. Different
rates, classes and criteria are thoroughly discussed in the report and some additional tax details
are also provided which is regulated in the country.

UK taxation2
Table of Contents
1.1 Introduction................................................................................................................................3
1.2 Discussion..................................................................................................................................3
1.3 Conclusion.................................................................................................................................9

UK taxation3
1.1 Introduction
Personal income tax is controlled under this law of Income Tax Act 2007 along with
some other acts. This rate will be dependent upon the rate of earning by the individual in any
financial year exceeding their personal allowance. Any person who is earning 0 to 32,000 pound
personal allowance or 11,000 to 43,000 pound of gross earned income then basic income tax rate
will be 20%. People earning from 32,000 pound to 150,000 pound will pay 40% tax and people
who are exceeding the 150,000 pound slab earning then they will have to pay additional 45%.
Apart from the income slab, individual’s residential status is also important to analyze whether
the person will pay tax on their income from UK or income from foreign. Generally UK
residents have to pay taxes on both the income but non-residents of UK may have to pay only for
income from UK and not on foreign income.
1.2 Discussion
Before the income tax liability is levied over any person, it is important to analyze
whether the person is resident of UK or not. For that an individual’s residence status needs to
evaluate carefully. These calculation is done for the tax year which is from 6 April to 5 April in
the following year. The person becomes automatically eligible for tax payment in either of the
following way:
 If the person is staying in that country for 183 days or above in the tax year.
 If the citizen has their own, hired or lived in their house in the country for 91 days in total
& 30 days in any tax year.