United Kingdom: Living There - Tax Issues
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Living There
UK residents are taxed on their worldwide income and on capital gains from disposal of their UK assets, and most likely on their overseas properties too.
Individual income from employment or business is taxed at:
INCOME TAX |
||
| TAXABLE INCOME, PHP (US$) | MARGINAL TAX RATE | |
| Up to 2,150 (€3,120) | 10% (starting rate) | |
| 2,150 - 33,300 (€48,327) | 22% (basic rate) (10% if income is from dividends) (20% if income is from savings) |
|
| Over 33,300 (€48,327) | 40% (higher rate) (32.5% if income is from dividends) |
|
| Source: Global Property Guide | ||
PERSONAL ALLOWANCES |
|
| CATEGORY | |
| Personal allowance | 5,035 (€7,307) |
| Personal allowance for people aged 65 - 74 | 7,280 (€10,565) |
| Personal allowance for people aged 75 and over | 7,420 (€10,768) |
Married Couple's Allowance
Married couples where at least one spouse was born before the sixth of April 1935 are eligible, in addition, for the married couple's allowance. The 2006-2007 rates are:
MARRIED COUPLE'S ALLOWANCE |
|
| CATEGORY (Age, at least a spouse) | |
| Age 65 before 06 April 2000 | 6,065 (€8,802) ) |
| 75 and over | 6,135 (€8,903) |
Tax Credits
Residents are eligible for child tax, and working tax credits. Child Tax Credit is a payment to support families with children. You can claim it if you, or your partner, are responsible for at least one child or young person who usually lives with you.
INCOME TAX CREDITS |
||||
| GROSS ANNUAL | ANNUAL CREDIT AWARD , £ (€) | |||
| INCOME, £ (€) | ONE CHILD |
TWO CHILDREN |
THREE CHILDREN | |
| 5,000 (€)7,256) | 2,240 (€)3,251) | 3,930 (€)5,704) | 5,625 (€)8,164) | |
| 10,000 (€)14,513) | 2,240 (€)3,251) | 3,930 (€)5,704) | 5,625 (€)8,164) | |
| 15,000 (€)21,769) | 1,835 (€)2,663) | 3,530 (€)5,123) | 5,225 (€)7,583) | |
| 20,000 (€)29,026) | 545 (€)791) | 1,680 (€)2,438) | 3,375 (€)4,898) | |
| 25,000 (€)36,282) | 545 (€)791) | 545 (€)791) | 1,525 (€)2,213) | |
| 30,000 - 50,000 (€)72,564) | 545 (€)791) | 545 (€791) | 545 (€791) | |
| 60,000 (€87,077) | nil | nil | nil | |
| Source: Global Property Guide | ||||
If you are working, you can qualify for additional amounts through Working Tax Credit, depending on your circumstances. Generally, the basic element of this credit for single person is €1,665 (€2,416) and €1,640 (€2,380) for a couple (not individual). The total amount payable really depends on the taxpayer's income i.e. the larger it is, the less credits and vice versa.
Capital Gains for Residents
Realized capital gains are treated as income, and taxed at the same rate as income from savings. The annual tax exempt amount for capital gains is €8,800 (€12,771). Amounts in excess of this would be taxed in the same rates as income tax.
United Kingdom - more data and information
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