Window tax

Last updated

Window tax was a property tax based on the number of windows in a house. It was a significant social, cultural, and architectural force in England, France, and Ireland during the 18th and 19th centuries. To avoid the tax, some houses from the period can be seen to have bricked-up window-spaces (which can be (re)glazed later). In England and Wales it was introduced in 1696 and in Scotland from 1748. [1] It was repealed in both cases in 1851. In France it was established in 1798 and was repealed in 1926.

Contents

History

The tax was introduced in England and Wales in 1696 under King William III and was designed to impose tax relative to the prosperity of the taxpayer, but without the controversy that then surrounded the idea of income tax. [2] [3]

A house in Portland Street, Southampton, with bricked-up spaces in place of windows Window Tax.jpg
A house in Portland Street, Southampton, with bricked-up spaces in place of windows

At that time, many people in Britain opposed income tax, on principle, because the disclosure of personal income represented an unacceptable governmental intrusion into private matters, and a potential threat to personal liberty. [4] The first permanent British income tax was not introduced until 1842, and the tax remained controversial into the 20th century. [5]

When the window tax was introduced, it consisted of two parts: a flat-rate house tax of two shillings per house (equivalent to £14.76 in 2021), [6] and a variable tax for the number of windows above ten in the house. Properties with between ten and twenty windows paid an extra four shillings (equivalent to £29.52 in 2021), [6] and those above twenty windows paid an extra eight shillings (equivalent to £59.05 in 2021). [6]

In 1709, with the union of England and Scotland, taxes were harmonised and a new top rate of 20s total was introduced for houses with 30 or more windows. In 1747 the 2s flat rate was detached from the window tax as a tax in its own right and the way the window tax was calculated was altered. 6d was charged for each window in a house with 10–14, 9d for each window in a house with 15–19, 1s for every window in a house with 20 or more. In 1758 the flat rate charge was increased to 3s. The number of windows that incurred tax was changed to seven in 1766 and eight in 1825. [7]

The flat-rate tax was changed to a variable rate, dependent on the property value, in 1778. People who were exempt from paying church or poor rates, for reasons of poverty, were exempt from the window tax. [8] Window tax was relatively unintrusive and easy to assess. Manchester Royal Infirmary had to pay a tax of 1/9d per window on the windows of the rooms occupied by staff of the infirmary in 1841—a total of £1 9/9d. [9] Certain rooms, particularly dairies, cheese rooms and milkhouses, were exempt providing they were clearly labelled, and it is not uncommon to find the name of such rooms carved on the lintel. The bigger the house, the more windows it was likely to have, and the more tax the occupants would pay. Nevertheless, the tax was unpopular, because it was seen by some as a tax on "light and air". [10]

In The Wealth of Nations , Adam Smith briefly discussed the window tax as one case among various forms of taxation. Smith observed that the tax was relatively inoffensive because its assessment did not require the assessor to enter the residence—a building's windows could be counted from the outside. On the other hand, Smith reported that others objected to the tax on the grounds of its inequality, since it was thought to have a disproportionate impact on the poor. Smith himself observed that the tax's effect was to lower rent. [11]

In Scotland, a window tax was imposed after 1748. A house had to have at least seven windows or a rent of at least £5 to be taxed. [12] Windows that have been filled with masonry may have no connection to taxation, but reflect the location of staircases, fireplaces or for purposes of maintaining the symmetry of a building facade. A similar tax also existed in France from 1798 to 1926.

There was a strong agitation in England in favour of the abolition of the tax during the winter of 1850–51, and it was accordingly repealed on 24 July 1851, and a tax on inhabited houses substituted. [13] The Scottish window tax was abolished at the same time. [14]

The saying "daylight robbery" is popularly believed to originate with the window tax, but there appears to be no scholarly support for this. [15] Another myth is that the tax inspired Europeans to begin using bricked-up windows, although this is also untrue, as blind windows were used for aesthetic purposes since at least the medieval period, such as on the Church of Saint John the Baptist, Kerch, Crimea, built in 757 AD. Windows were also bricked up in Europe from the 1600s to avoid taxes. [16]

See also

Related Research Articles

A poll tax, also known as head tax or capitation, is a tax levied as a fixed sum on every liable individual, without reference to income or resources. Poll is an archaic term for "head" or "top of the head". The sense of "counting heads" is found in phrases like polling place and opinion poll.

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to collectively fund government spending, public expenditures, or as a way to regulate and reduce negative externalities. Tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax relief. The first known taxation took place in Ancient Egypt around 3000–2800 BC. Taxes consist of direct or indirect taxes and may be paid in money or as its labor equivalent.

A flat tax is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base. It is not necessarily a fully proportional tax. Implementations are often progressive due to exemptions, or regressive in case of a maximum taxable amount. There are various tax systems that are labeled "flat tax" even though they are significantly different. The defining characteristic is the existence of only one tax rate other than zero, as opposed to multiple non-zero rates that vary depending on the amount subject to taxation.

An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them. Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income.

<span class="mw-page-title-main">Poll tax (Great Britain)</span> Controversial system of taxation in the UK from 1989 to 1993

The Community Charge, commonly known as the poll tax, was a system of taxation introduced by Margaret Thatcher's government in replacement of domestic rates in Scotland from 1989, prior to its introduction in England and Wales from 1990. It provided for a single flat-rate, per-capita tax on every adult, at a rate set by the local authority. The charge was replaced by Council Tax in 1993, two years after its abolition was announced.

<span class="mw-page-title-main">Taxation in the United Kingdom</span> United Kingdom tax codes

In the United Kingdom, taxation 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.

A surtax is a tax levied upon another tax, also known as tax surcharge.

Taxation in Indonesia includes income tax, value added tax and carbon tax.

<span class="mw-page-title-main">Hearth tax</span> United Kingdom legislation

A hearth tax was a property tax in certain countries during the medieval and early modern period, levied on each hearth, thus by proxy on wealth. It was calculated based on the number of hearths, or fireplaces, within a municipal area and is considered among the first types of progressive tax.

Taxes in India are levied by the Central Government and the State Governments by virtue of powers conferred to them from the Constitution of India. Some minor taxes are also levied by the local authorities such as the Municipality.

The hut tax was a form of taxation introduced by British in their African possessions on a "per hut" basis. It was variously payable in money, labour, grain or stock and benefited the colonial authorities in four interconnected ways, by raising money; supporting the economic value of the local currency(and colonially controlled); broadening the newly introduced cash-based colonial economy, forced South Africans into laboring for colonial establishments, creating dependency on capitalism. Households which had primarily been rural ranchers or farmers proceeded to send members to work in the cities or on colonial government-sponsored construction projects to earn money to pay the tax. The new colonial economies in Africa were primarily reliant upon the construction of towns and infrastructure, and in South Africa the rapidly expanding mining operations.

The history of taxation in the United States begins with the colonial protest against British taxation policy in the 1760s, leading to the American Revolution. The independent nation collected taxes on imports ("tariffs"), whiskey, and on glass windows. States and localities collected poll taxes on voters and property taxes on land and commercial buildings. In addition, there were the state and federal excise taxes. State and federal inheritance taxes began after 1900, while the states began collecting sales taxes in the 1930s. The United States imposed income taxes briefly during the Civil War and the 1890s. In 1913, the 16th Amendment was ratified, however, the United States Constitution Article 1, Section 9 defines a direct tax. The Sixteenth Amendment to the United States Constitution did not create a new tax.

<span class="mw-page-title-main">Taxation in medieval England</span> Taxes and tax policy in medieval England

Taxation in medieval England was the system of raising money for royal and governmental expenses. During the Anglo-Saxon period, the main forms of taxation were land taxes, although custom duties and fees to mint coins were also imposed. The most important tax of the late Anglo-Saxon period was the geld, a land tax first regularly collected in 1012 to pay for mercenaries. After the Norman Conquest of England in 1066, the geld continued to be collected until 1162, but it was eventually replaced with taxes on personal property and income.

<span class="mw-page-title-main">History of taxation in the United Kingdom</span> United Kingdom legislation

The history of taxation in the United Kingdom includes the history of all collections by governments under law, in money or in kind, including collections by monarchs and lesser feudal lords, levied on persons or property subject to the government, with the primary purpose of raising revenue.

<span class="mw-page-title-main">Value-added tax in the United Kingdom</span>

In the United Kingdom, the value added tax (VAT) was introduced in 1973, replacing Purchase Tax, and is the third-largest source of government revenue, after income tax and National Insurance. It is administered and collected by HM Revenue and Customs, primarily through the Value Added Tax Act 1994.

<span class="mw-page-title-main">Maldives Inland Revenue Authority</span> Autonomous taxation body in the Maldives

The Maldives Inland Revenue Authority (MIRA) is a fully autonomous body responsible for tax administration in the Maldives. MIRA collected 78.1% of the total revenue collected by the government of Maldives in 2018. The main responsibilities of MIRA include execution of tax laws, implementation of tax policies and providing technical advice to the government in determining tax policies. The Tax Administration Act stipulates the other responsibilities of MIRA.

<span class="mw-page-title-main">Taxation in Scotland</span>

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 is reserved to the UK Parliament.

<span class="mw-page-title-main">Tampon tax</span> Value-added tax or sales tax charged on feminine hygiene products

Tampon tax is a popular term used to call attention to tampons, and other feminine hygiene products, being subject to value-added tax (VAT) or sales tax, unlike the tax exemption status granted to other products considered basic necessities. Proponents of tax exemption argue that tampons, sanitary napkins, menstrual cups and comparable products constitute basic, unavoidable necessities for women, and any additional taxes constitute a pink tax.

<span class="mw-page-title-main">Land Tax (England)</span> A land value tax (1689 to 1963)

The Land Tax was a land value tax levied in England from 1692 to 1963, though such taxes predate the best-known 1692 Act. Taxes on land date back to the Norman Conquest and beyond, and the Land Tax introduced in 1692 was a natural successor to taxation acts in 1671 and 1689, but the 1692 act "has been regarded as a turning point in the history of English revenue collection. It was from this Act that contemporaries and historians alike date what has come to be known as the eighteenth-century Land Tax". The land tax elements of the 1671, 1689 and 1692 Acts were limited to one year but the 1798 Act made the tax perpetual.

<span class="mw-page-title-main">Business rates in Wales</span>

Business rates is the commonly used name of Non-Domestic Rates in Wales, a tax on occupation of non-domestic property. Rates are a property tax used to fund local services that date back to ancient times.

References

  1. ↑ "Scottish window tax costs revealed". bbc.co.uk. 18 July 2013.
  2. ↑ Herber, Mark D (1997). Ancestral Trails: The complete guide to British genealogy and family history. Sutton Publishing Ltd. ISBN   0-7509-1418-1. p.416
  3. ↑ "William III, 1695-6: An Act for granting to His Majesty severall Rates or Duties upon Houses for making good the Deficiency of the clipped Money. [Chapter XVIII. Rot. Parl. 7&8 Gul. III. p.5.n.4]". Statutes of the Realm. Vol. 7. Great Britain Record Commission, s.l, 1820. pp. 86–94 – via British History Online.
  4. ↑ John Stuart Mill, Principles of Political Economy (1848), Bk. V, Ch. 3, Section 5
  5. ↑ HM Revenue & Customs "Nicholas Vansittart was Chancellor when Napoleon was defeated [in 1815]. His inclination was to maintain some tax on income, but public sentiment and the opposition were against him. A year after Waterloo, income tax was repealed ‘with a thundering peal of applause’ and Parliament decided that all documents connected with it should be collected, cut into pieces and pulped."
  6. 1 2 3 UK Retail Price Index inflation figures are based on data from Clark, Gregory (2017). "The Annual RPI and Average Earnings for Britain, 1209 to Present (New Series)". MeasuringWorth. Retrieved 11 June 2022.
  7. ↑ Andrew E. Glantz (2008). "A tax on light and air: Impact of the Window Duty on Tax Administration and Architecture, 1696-1852". University of Pennsylvania. Retrieved 8 September 2015.
  8. ↑ Herber p. 416
  9. ↑ Brockbank, William (1952). Portrait of a Hospital. London: William Heinemann. p. 77.
  10. ↑ "Citizenship".
  11. ↑ Smith, Adam (1991). The Wealth of Nations. Prometheus Books. pp. 517–518. ISBN   9780879757052.
  12. ↑ National Archives of Scotland: Guide to taxation records.
  13. ↑ Encyclopædia Britannica (1911), volume 28, page 713.
  14. ↑ "Scottish window tax costs revealed". BBC News. BBC. 18 July 2013. Retrieved 5 August 2021.
  15. ↑ Martin, Gary. "'Daylight robbery' - the meaning and origin of this phrase". Phrasefinder. Retrieved 2022-10-24.
  16. ↑ "The 'visual beauty' of bricked-up windows". BBC News. 2021-06-15. Retrieved 2021-06-15.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.