What is Taxable?

A surprising amount of things in the UK are covered by the income tax laws. You pay tax on everything you earn over and above the amount stipulated by the Government. You pay tax on some food on your clothing and on many other household items. Things like books and postage stamps are immune from VAT. If you win money on the lottery or in any other game that you pay for money, then you will pay tax on your winnings. In the same way, if you are left something in another person’s will, and that gift is more than the amount specified by the Government then you would have to pay inheritance tax.

It doesn’t matter what we do or where we go, we are haunted by taxation systems. Many countries have a much lower tax rate than the UK and the rest of Europe. Plenty of rich people, including some rock stars and film stars, prefer to live in the United States because they pay a far lower rate of tax on their money, than is common in the UK. While tax rates may be higher in Britain, it is also true to say that these taxes help to pay for public services such as hospitals and railway stations. Although most states will fund railways, far less of them will fund a public health system.