Tax Law

This is an expansive and continuously changing area of law, concerning the payment of compulsory financial charges imposed on individuals and business by the UK Government. Tax Law regulates the payment of taxes on: goods and services, such as VAT and fuel duty; individuals, such as council tax, income tax, and inheritance tax; and companies, such as corporation tax. HMRC and Tax Tribunals perform an essential role in the interpretation and application of this area of law.



Here is what Tax Law covers:

Business Rates

Business Rates is a tax applied to the occupation of non-domestic property, such as offices, pubs and warehouses. Companies or organisations that use these premises for non-residential purposes, are liable to pay Business Rates, but can sometimes be eligible for reductions through tax relief.

Capital Gains Tax

Capital Gains Tax is the tax paid on the profit made on a sold asset that has increased in value. This Tax is only paid on chargeable assets, and there are some exemptions that are tax-free. There is also a tax-free "annual exempt amount", and profit made under this threshold is not liable to be taxed.

Capital Gains Tax

Capital Gains Tax is the tax paid on the profit made on a sold asset that has increased in value. This Tax is only paid on chargeable assets, and there are some exemptions that are tax-free. There is also a tax-free "annual exempt amount", and profit made under this threshold is not liable to be taxed.

Corporation Tax

Corporation Tax is a tax paid on the profits made by limited companies in the accounting year. The company is responsible for registering and keeping accounting records, in order to calculate how much corporation tax they owe. Taxable profits that are chargeable include trading profits, investments and the selling of assets at a profit.

Council Tax

This is a tax that adult residential property owners must pay to their local councils, with some exceptions, for the services that are provided in turn. These services include but are not limited to: waste collection, libraries, schools, road maintenance and street lighting.

Enterprise Management Incentives

An Enterprise Management Incentive scheme is a scheme available to employees whereby the company they work for can offer them share options, in recognition of their efforts within the business. Tax is not chargeable on these schemes, although capital gains tax may be payable if the worker sells the shares for a profit.

HMRC and disputes

HMRC stands for Her Majesty's Revenue and Customs, which is a government department that oversees the collection of tax paid by individuals and businesses. If a dispute arises, the tax payer has the right to appeal a decision made by HMRC within a certain time frame. In parallel, there are penalties and legal consequences for tax payers who avoid or refuse to pay their taxes. HMRC also make tax refunds if an individual or business has overpaid on their taxes or been overcharged.

Import Duty

Import Duty is the tax paid on imported goods from abroad. The Tax must be paid in order to release the products from customs, and the amount of tax payable is generally determined by the value of the goods being imported.

Inheritance Tax

Inheritance Tax is the tax paid on the estate of a deceased person. The amount of tax payable will depend on the value of the estate, as there is a tax-free threshold that applies to each individual. This area details who is liable to pay the tax, as well as the procedure of making the payment.

Stamp Duty

Stamp Duty Land Tax (SDLT) is paid when acquiring a property. It is calculated depending on (1) the value of the purchased property, and (2) whether the property is the main residence, or an additional home. The correct fee must be paid to HMRC within a certain timeframe, and must be accompanied by the corresponding SDLT application form. On receipt of the correct SDLT fee and forms, HMRC will return a certificate to the property owner, which is required to register their interest in the property with HM Land Registry.

Taxable Income

Taxable Income is the amount of income that is used to calculate an individual's tax liability to the government. Deductions and exemptions can be applied to the Gross Income of an individual, bringing the total taxable income figure down. Taxable income can include, wages, salaries, bonuses and tips, as well as investment profits and employment benefits.

Tax Relief

Tax Relief is the concept of reducing the amount of tax one owes, through reductions, exemptions and supplying credit. Tax Relief generally comes in the form of a government programme, and applies to work or business expenses, pensions scheme payments, charity donations and maintenance payments.

VAT

VAT ("value added tax") is an indirect tax imposed on goods and services, recognising the value that is added at each transaction process, starting from the manufacturing materials, to the finished product. This area is applicable to both businesses and consumers, as both pay VAT on products and services.