The distribution of poverty wealth and income

wealth

refers to peoples assets and what a person sells for cash

• jewellery

• house

• car

income

the money coming in to your bank account

marketable wealth

assets that can be bought and sold

non-marketable wealth

pensions or long term serving plans

productive property

unearned income e.g. money from a property that is rented out

consumption property

wealth that you have in the form of consumer goods

disposable income 

what you have left after paying tax 

discretionary income

what is left after tax, bills, food and travel costs

inheritance tax

a tax payed on something you inherit 

capital gains tax 

intended to reduce the profits of those who own shares

income tax

tax payed based on your salary

tax avoidance

• legal

• if you buy something but say its a business expense then you cant get taxed

tax evasion

• illegal

• you dont tell HMRC how much you earn so you can pay less tax

poverty statistics

• 14.6 million live in poverty

• 33.6% of children are in poverty

• 50% of those in poverty are on a low income/have no job

• 16% of pensioners are in poverty

• 46% of lone parents are in poverty