A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term progressive refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate. The term can be applied to individual taxes or to a tax system as a whole. Progressive taxes are imposed in an attempt to reduce the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay. The opposite of a progressive tax is a regressive tax, such as a sales tax, where the poor pay a larger proportion of their income compared to the rich.
National Insurance (NI) is a fundamental component of the welfare state in the United Kingdom. It acts as a form of social security, since payment of NI contributions establishes entitlement to certain state benefits for workers and their families.
Vehicle Excise Duty (VED) is an annual tax that is levied as an excise duty and which must be paid for most types of powered vehicles which are to be used on public roads in the United Kingdom. Registered vehicles that are not being used or parked on public roads and which have been taxed since 31 January 1998, must be covered by a Statutory Off Road Notification (SORN) to avoid VED. In 2016, VED generated approximately £6 billion for the Exchequer.
Taxation in the United Kingdom may involve payments to at least three different levels of government: central government, devolved governments and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England, Council Tax and increasingly from fees and charges such as those for on-street parking. In the fiscal year 2014–15, total government revenue was forecast to be £648 billion, or 37.7 per cent of GDP, with net taxes and National Insurance contributions standing at £606 billion.
The National Minimum Wage Act 1998 creates a minimum wage across the United Kingdom. From 1 April 2022 this was £9.50 for people age 23 and over, £9.18 for 21- to 22-year-olds, £6.83 for 18- to 20-year-olds, £4.81 for people under 18 and £4.30 for apprentices.
Stamp duty in the United Kingdom is a form of tax charged on legal instruments, and historically required a physical stamp to be attached to or impressed upon the document in question. The more modern versions of the tax no longer require a physical stamp.
Taxes in New Zealand are collected at a national level by the Inland Revenue Department (IRD) on behalf of the Government of New Zealand. National taxes are levied on personal and business income, and on the supply of goods and services. There is no capital gains tax, although certain "gains" such as profits on the sale of patent rights are deemed to be income – income tax does apply to property transactions in certain circumstances, particularly speculation. There are currently no land taxes, but local property taxes (rates) are managed and collected by local authorities. Some goods and services carry a specific tax, referred to as an excise or a duty, such as alcohol excise or gaming duty. These are collected by a range of government agencies such as the New Zealand Customs Service. There is no social security (payroll) tax.
Hydrocarbon Oil Duty is a fuel tax levied on some fuels used by most road motor vehicles in the United Kingdom; with exceptions for local bus services, some farm and construction vehicles and aviation, which pay reduced or no fuel duty.
A landfill tax or levy is a form of tax that is applied in some countries to increase the cost of landfill. The tax is typically levied in units of currency per unit of weight or volume. The tax is in addition to the overall cost of landfill and forms a proportion of the gate fee.
Air Passenger Duty (APD) is an excise duty which is charged on the carriage of passengers flying from a United Kingdom or Isle of Man airport on an aircraft that has an authorised take-off weight of more than 5.7 tonnes or more than twenty seats for passengers. The duty is not payable by inbound international passengers who are booked to continue their journey within 24 hours of their scheduled time of arrival in the UK. If a passenger "stops-over" for more than 24 hours, duty is payable in full.
Insurance Premium Tax (IPT) is a type of indirect tax levied on general insurance premiums in the United Kingdom.
The Office for Budget Responsibility (OBR) is a non-departmental public body funded by the UK Treasury, that the UK government established to provide independent economic forecasts and independent analysis of the public finances. It was formally created in May 2010 following the general election and was placed on a statutory footing by the Budget Responsibility and National Audit Act 2011. It is one of a growing number of official independent fiscal watchdogs around the world.
Income tax in Scotland is a tax of personal income gained through employment. This is a tax controlled by the Scottish Parliament, and collected by the UK government agency HM Revenue & Customs.
Revenue Scotland is a non-ministerial department of the Scottish Government responsible for the administration and collection of devolved taxes in Scotland.
Land and Buildings Transaction Tax (LBTT) is a property tax in Scotland. It replaced the Stamp Duty Land Tax from 1 April 2015.
Taxation in Scotland today involves payments that are required to be made to three different levels of government: to the UK government, to the Scottish Government and to local government. Currently 32.4% of taxation collected in Scotland is in the form of taxes under the control of the Scottish parliament and 67.6% of all taxation collected in Scotland goes directly to the UK government in taxation that is a reserved matter of the UK parliament.
The Landfill Tax (Scotland) Act 2014 is an Act of the Scottish Parliament, introduced to the legislature in 2013 and receiving Royal Assent on 21 January 2014, which creates a new Scottish Landfill Tax. The tax applies mainly to waste management companies and local authorities disposing of waste at landfill.
The Welsh Revenue Authority is a non-ministerial department of the Welsh Government responsible for the administration and collection of devolved taxes in Wales.
Taxation in Wales typically comprises payments to one or more of the three different levels of government: the UK government, the Welsh Government, and local government.
The Landfill Disposals Tax (LDT) is part of the UK tax system and from 6 April 2019 is collected by the Welsh Revenue Authority and the money is used to support public services in Wales. The Landfill Disposals Tax replaced Landfill tax in Wales from 1 April 2018. The Landfill Disposals Tax (Wales) Act 2017, which received Royal Assent on 7 September 2017, is a tax on the disposal of waste to landfill and is charged by weight. The Welsh Revenue Authority has collected and manages both the Land Transaction Tax and Landfill Disposals Tax in Wales since 2018.
