CHAPTER 14

GENERAL TAX PLANNING

Intaxication (n.): Euphoria at getting a tax refund, which lasts until you realise it was your money to start with.

The main personal taxes

The following are the main taxes (and rates for 2014–2015) as they affect UK-domiciled and resident individuals:

  • Income tax – levied on earnings, rental income, royalties, interest and dividends at rates between 20% and 45%.
  • Value added tax (VAT) – levied on purchase of most goods and services, mainly at a rate of 20%.
  • Capital gains tax (CGT) – levied on gains arising on disposal of assets in one’s lifetime at either 18% or 28% depending on the income tax rate paid, although the rate is 10% for gains of up to £10 million arising from the sale of certain business interests ...

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