What tax policies do British immigrants need to know?

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.

Extended reading: matters needing attention when immigrating to Britain

First, the address

We all know that many of us have received some English education in China. In Britain, the first name comes first and the last name comes last. So when you are in England, if you know an elder, you can't call him by his first name directly, but you must add his last name. If it's your friend, your peers, or someone younger than you, you can call them by their first names.

Second, line up

After you go to England, you will find that everyone is of high quality and hate to see someone cut in line. So when we buy things in British stores, we must remember to line up and don't push forward.

Third, the guest etiquette.

We can't go in or out of other people's homes without their permission and invitation. We received an invitation from one party to visit their home, and we must bring flowers or chocolates to our hostess when we go.

Fourth, the etiquette of sending flowers.

In Britain, girls who send flowers should be odd, not even, because even numbers symbolize bad luck in Britain.

Fifth, privacy.

The British royal family is a symbol of British power, so when you are in Britain, you can't talk about the privacy of the British royal family.