Personal taxes

摘要

By European standards, the UK has historically been regarded as a relatively low-tax country for personal taxpayers. There have also been steps to simplify the tax system, though certain aspects remain complex. The tax year for personal taxpayers runs from April 6th to April 5th; hence, the 2020/21 tax year ends on April 5th 2021. Tax treatment in the UK for an individual depends on whether a person is resident, ordinarily resident and/or domiciled in the UK. (Domicile is often described as the location of the individual's permanent home, though it is possible to be resident in the UK for many years while remaining non-UK domiciled.) Where an individual is resident, ordinarily resident and domiciled in the UK, that person is subject to British income tax and capital-gains tax on worldwide income and capital gains, regardless of whether they were received in the UK, subject to the provisions of an applicable double-taxation treaty. There is a limited exception for seafarers. UK residents who are not ordinarily resident or not UK domiciled may not be subject to worldwide taxation. For example, individuals working and resident in the UK but not domiciled in the UK can claim to be taxed on the remittance basis of their income. They will then be subject to UK tax only on overseas income and capital gains on non-UK assets remitted to or received in the UK.