Different types of taxes Flashcards
1
Q
What is Air Passenger Duty?
A
- A duty chargeable per passenger flying from UK airports to domestic and international destinations.
2
Q
What is the Capital Gains Tax?
A
- Tax on profits realised on the sale of a non-inventory asset; it is a levy for an investor making a sale on an investment.
3
Q
What is Corporation Tax?
A
- A type of direct tax levied on the income or capital of corporations. The tax paid from the company is paid to HMRC ( HM Revenue and Customs).
- It is the profits from an accounting period.
4
Q
What is NIC?
A
- National Insurance Contribution.
- A tax on earning and self- employed profits.
5
Q
What is Fuel Duty?
A
- It is levied on purchases of petrol, diesel, and a variety of other fuels.
- It is currently levied at a flat rate of 52.95p per litre.
6
Q
What is Income Tax?
A
- Tax imposed on individuals or entities in respect of the income or profits earned by them.
- The tax is paid on things like money you earn from employment.
7
Q
What is Inheritance Tax?
A
- A tax paid by a person who inherits money or property of a person who has died.
8
Q
What is Stamp Duty?
A
- A tax levied on single property purchases or documents.
- The rate ranges from 5 percent to 12 percent of the purchase price in the UK.
9
Q
What is VAT?
A
- Value Added Tax
- A tax added to most products and services. It is a consumption tax that it levied on the value added at each stage of a product production and distribution.
- Standard rate of VAT 20 percent.
10
Q
Why has the Air Passenger Duty been brought about?
A
- This tax was introduced to offset the environmental impact of air travel. The tax depends on where their journey ends.
11
Q
Why is the Capital Gains Tax been brought about?
A
- To encourage more profital investment.
12
Q
Why has the Corporation Tax been brought about?
A
- It is introduced to reduce companies’ after-tax profits and therefore the return to company shareholders.
