- Created by: Ryan62835
- Created on: 28-09-18 13:39
Inheritance, Capital gains and Income tax
Inheritance tax = tax which payable when people give gifts of wealth before and after death. This is controversal as many believe that money given from loved ones should be given in full to the family as the departed relative had earned that money in the first place and the tax had already been deducted when they earned the money.
Capital Gains tax = tax enforced when selling property or shares.
Income tax = tax which is payable depending on earned income.
Social Welfare and the Minimum Wage
Social welfare = benefits from the state to help the disadvantaged people in society.
Minimum wage = legal requirement for companies to pay their workers which changes every April each year depending on the national living wage.
Tax Relief and the Tax avoidance scheme
Tax Relief = The state allows tax relief, money normally used to pay income tax, on a wide variety of things such as business expenses, school fees, private pensions. These are expenses which only the better-off are likely to have. This means that they pay a smaller proportion of their income in tax than a person who is poorer but who does not have these expenses.
Tax avoidance schemes = These are schemes which are perfectly legal, often being thought up by financial advisors and accountants to find loopholes in the tax laws to beat the tax system, thereby saving the rich plenty of money.
Tax evasion is illegal and involves people not declaring wealth and income to HMRC. This is suspected to be common practice among the rich by the authorities.