British immigration tax policy: what taxes do new immigrants have to pay?

Many immigrants aim to improve Britain's superior social welfare system. When they immigrate and become citizens, they have to pay a lot of taxes. Do you want to know what taxes they have to pay? Yes, let me give you a detailed introduction.

tax system

I. Individual income tax

On the basis of classified income, comprehensive income is taxed. Taxable income is divided into six categories, namely

(1) Rent, rental commission and similar payments obtained from operating real estate such as land and buildings;

② Forest land income;

(3) Interest income from British and foreign public bonds paid in the UK;

4 wage income;

(5) Income from dividends paid by British resident companies;

⑥ Income from business and professional practice, income from foreign business and property, income from interest withheld from sources, pension, royalties, interest on foreign securities and other types of income.

Taxpayers are divided into permanent residents, non-permanent residents and non-residents.

Residents refer to:

(1) stay in the UK for more than 6 months in the tax year;

(2) Living in the UK for more than 3 months every year for 5 consecutive years;

(3) Have a domicile in the UK and live in the UK, regardless of the length of their stay. However, they have been engaged in business, other occupations or employees abroad.

(4) Residents generally pay taxes according to their worldwide income. If they have British qualifications as stipulated in the British Nationality Act, they can enjoy basic living deduction when calculating taxable income.

Non-residents only tax their source income in Britain, and generally do not enjoy the basic living deduction. However, those with British education can be deducted from the basic living expenses according to the proportion of their British income in the world.

Taxpayers' taxable income is calculated by deducting legal deductions (such as qualified operating expenses from operating income) from various incomes, obtaining comprehensive income from various incomes (including income that has been taxed from the source), and then deducting livelihood expenses, which is the actual taxable income. When all kinds of income are combined into comprehensive income, it is allowed to offset the profit and loss according to law (for example, the operating loss can be offset by the total income), and then tax is levied according to the progressive tax rate. The tax paid withheld from the source can be deducted from the tax payable. Personal income tax is paid by self-declaration, and both parties living together can declare it jointly or separately.

Second, corporate tax.

That is, enterprise income tax, 1947. The Income and Corporate Tax Law promulgated by 1970 and the Capital Income Tax Law promulgated by 1979 are the main tax laws and regulations. Corporate taxpayers are divided into resident companies and non-resident companies.

Companies include entities (limited or unlimited) registered according to the Company Law and other laws and regulations, as well as unincorporated organizations other than unit trust companies and partnerships approved by the Ministry of Commerce. The share of partnership members in the partnership profits shall also be paid as a part of the total taxable profits in the corresponding accounting period.

Resident company: refers to the company controlled and managed by the central government in Britain. The location of the board meeting is the basic criterion for determining the residence. No matter where the company is registered and where the actual activities are carried out, the domicile in Britain is a resident company. Resident companies must pay taxes on their global income.

Non-resident companies: companies that are not resident companies (including foreign companies). Non-resident enterprises only pay taxes on income from Britain, which is often determined by referring to the relevant double taxation treaties between the two sides.

The taxable income range of corporate tax is similar to the six categories of taxable income of personal income tax. The calculation method of taxable income is to add the total taxable profit of the company in each accounting period (including the current income calculated according to different categories) to the capital gains, and deduct the losses, expenses and investments that are allowed to be deducted. Income from abroad should be included in the total profits whether remitted back to the UK or not, but the income from foreign subsidiaries can only be attributed to the British parent company after the actual distribution of profits. For the total net profit obtained, a single corporate tax is levied at the proportional rate. The tax rate is published once a year.

Income from foreign sources of resident companies, whether under double taxation treaties or through unilateral relief, is exempt from double taxation. Profits made by non-resident companies through their branches or agencies in the UK shall be subject to corporate tax. Other income from Britain shall be taxed at the basic tax rate, except those protected by double taxation treaties.

Corporate tax also stipulates accelerated depreciation, and encourages taxpayers to postpone the tax on their capital gains when reinvesting the sales income of some business assets in another asset, so as to realize the government's policy of encouraging capital investment and promoting the balanced development of regional economy.

Three. the social insurance tax

The purpose is to provide funds for medical insurance, retirement and unemployment. Taxpayers are both employers and employees. For employees, the income below the prescribed lower limit and above the prescribed upper limit is not taxed, and the income within the upper limit and lower limit is levied at a graded progressive tax rate; For the employer, according to the total wages and salaries paid to employees, there is only a lower limit, no upper limit, and a progressive tax rate is also adopted. Employees and employers are divided into two situations: within and outside the national pension plan, and the applicable tax rates are different. Under the same circumstances, the tax rates of employers and employees are also different.

Four. value-added tax

1973 was implemented on April 1 day. The value-added tax law of 1983 and the decree issued by the Commissioner of Customs are the legal basis of value-added tax.

Value-added tax is levied on all goods and services provided by commercial activities carried out or promoted in the UK, as well as imported goods and specific services (excluding goods and services that are duty-free and non-taxable) entering the UK. Export commodities, food, books, construction, transportation, medicine and other commodities and services are subject to zero tax rate, while other commodities and services are subject to uniform standard tax rate. The tax base is the value of the goods (or services) provided, which is usually the total cash reward received by the goods (services) provider (if the reward is in kind, it is calculated according to its open market price).

Verb (abbreviation for verb) tariff and consumption tax

Tariffs are only levied on goods imported from countries outside Europe. Levy goods tax on specific categories of domestic or imported goods (mainly oil, alcoholic beverages and tobacco). Different kinds of goods have different tax rates.

Stamp duty on intransitive verbs

Collection vouchers involving asset transfer, property lease, share capital issuance and increase. The tax rates vary.

Tax management system

Britain implements the central and local (county, district) tax sharing system, and local governments only levy taxes on property. The taxes collected by the central government mainly include personal income tax, enterprise tax, social insurance tax, value-added tax, customs duties and other taxes. The legislative power of taxation lies in Parliament, and the Ministry of Finance is responsible for drafting the draft tax law. Tax policies and measures are put forward once a year, and after being approved by the parliament, they are included in the financial laws and regulations of that year as the legal basis for tax collection in that year.

The central tax is collected and managed by the internal taxation bureau, customs and consumption tax bureau (only responsible for customs duties, value-added tax and consumption tax). The Tax Committee appointed by the Queen heads the Internal Revenue Service. The Tax Committee has 1 chairman, 65,438 vice-chairmen, 65,438 chief appraisers, 65,438 assistants to the chairman and 2 directors. Under the leadership of the Committee, the State Administration of Taxation has tax administration department, technology department, management department, law office, evaluation room, comprehensive department and statistics department, which are responsible for all businesses. Below the domestic tax bureau, there are 15 regional tax bureaus in China. Under the leadership of local tax bureaus, about 800 tax bureaus are set up nationwide according to their functions to determine taxpayers' tax obligations, and about 250 tax collection bureaus are set up to take charge of tax collection. Local taxes are collected by another agency of the local government and have nothing to do with the internal taxation bureau in organization.

Why did you immigrate to Britain?

First of all, Britain has always been a popular country for studying abroad, and its education is famous for its high quality and strict requirements. Britain occupies four seats in the top ten universities in the world. Good educational environment, abundant teachers and open educational model attract domestic students to study in the UK.

In addition, there is an attractive welfare for British immigrants, which is universal health insurance, that is, NHS. "Universal medical care" has always been one of the most concerned topics in all countries. How to operate "universal health care" maturely and successfully represents a country's comprehensive soft power. Britain is one of the few countries in the world that implement the system of free medical care for all. Its national medical service NHS is the largest public medical service in the world. As long as you become a British resident, you have the right to enjoy free medical care for all. This is a welfare that China people can't reach at the moment when the domestic medical expenses are high.

There are many different towns in Britain, from Cornwall in the south to Edinburgh in the north. Different cities have different customs, and the ecological environment in Britain is amazing. Britain has a good ecological environment, fresh air, broad vision and harmony between man and nature. This is not only closely related to its geographical location and maritime climate conditions, but also directly related to Britain's emphasis on greening and environmental protection measures. London, Oxford, Cambridge, York, Edinburgh, Glasgow, Manchester, Liverpool and other cities. With more than 40% green coverage, the city is truly adjacent to the forest.

"Public transport" is also one of the most important factors for a country's development. Britain has a very mature public transport system. Its planes, trains, subways, long-distance buses, buses and taxis cover the whole country and can reach the destination quickly and safely. Among them, London was rated as the best taxi service city in the world, and London taxi drivers were still rated as the friendliest drivers. They have rich regional knowledge and skilled driving skills, which make people feel comfortable and safe, and the interior of the vehicle is also very clean. Britain is also one of the most developed markets for low-cost airlines, mainly including major companies such as Easyjet, Ryanair, Bmibaby, etc. These companies operate flights to major cities and resorts in continental Europe, as well as many domestic flights in Britain.

Although "English food" is often a frequent visitor on the list of unpalatable foods, people who have never lived here may not know that London is actually an international food capital. A quarter of the top 50 restaurants in the world recently published by the catering magazine Restaurant are British brands. The restaurant invited more than 500 writers and gourmets from all over the world as judges to judge according to the taste of food and the quality of restaurant service. As a result, the judges think that Britain can become the number one gourmet paradise because of the variety and quality of food. Many restaurants invited master chef to take the helm, and immigration made British restaurants and food more international. Few cities offer comprehensive and exquisite food choices like London.

For many China friends who are not familiar with Britain, it may be unexpected that there are so many names in London. According to the well-known picky customers of the world's largest tourist community, London is called the best tourist city in the world, ahead of new york and Rome. There are also names such as fashion capital of the world, the shopping capital of the world, the breakfast capital of the world (because of the classic English breakfast) and the luxury villa capital of the world. During my life in Britain, I strongly felt the rich cultural heritage of this country. No country can combine history with modernity, conservatism and innovation so well as those free museums, operas and dramas staged all the year round, and historical buildings protected by the government. There are many words to describe Britain, but here I want to use eight words to describe it: prosperity, fashion, dignity, elegance, preciseness, freedom, innovation and calmness.

British investment immigrants have always been described as a game of "local tyrants", but in this big game, the ultimate benefit is the investment immigrants themselves. The non-economic benefits of investment immigrants are considerable, such as legal policy protection, asset security protection, access to high-quality higher education and so on.