19%, which is one of the lowest in Europe; by 2020 it is planned to decrease to 17%
Value Added Tax (VAT)
20%, the registration is required if VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. VAT taxable turnover is the total of everything sold that is not VAT exempt.
Tax on Dividends
The tax-free dividend allowance is £2,000. Basic-rate taxpayers pay (up to £36,500) – 7.5%. Higher-rate taxpayers pay (up to £150,000) 32.5% on dividends. Additional-rate taxpayers pay (over £150,000) 38.1% on dividends.
The tax-free income allowance is 11,850. Basic-rate taxpayers pay (up to £46,350) – 20%. Higher-rate taxpayers pay (up to £150,000) 40% on income. Additional-rate taxpayers pay (over £150,000) 45%.
State Social Insurance Contributions and Pension Fund Contributions
Social insurance contributions are mandatory for employee income above the tax-free minimum of £ 702 per month and are withheld at 12% of the employee’s income and 13.8% of the employer’s income. Payments to pension funds are also compulsory starting from 5% at the choice of both parties
Capital Gain Tax
Amounts exceeding £ 11,700 (including £ 5,850 for trusts) are taxed at the following rates: 28% – on rental income from real estate; 20% – on income from other assets
The basic rate is 40% of the market value of the inherited real estate or assets in excess of £ 325,000