Taxation worksheet

  1. Income tax - tax or earnings, profits from investments and any other sources of personal income

  2. Capital gains tax - Tax on profits made by selling assets such as businesses, rented houses and shares

  3. Value added Tax (VAT) - Tax on goods and services. (In the UK it is charged at 17.5%

  4. Stamp duty - A tax on specific transactions. (In the UK, it is payable by the buyer of a house)

  5. Wealth tax - Tax on assets, such as houses, payable in some countries, but not in the UK

  6. Inheritance tax - Tax on the assets of a person who has died, used to be called “death duties”

  7. Corporation tax - tax paid by companies

Definitions

  1. Tax relief - the system of allowing someone not to pay tax on a part of their income (any government program or policy designed to help individuals and business reduce their tax burdens)

  2. Tax break - a change in the law that results in the opportunity to pay less in taxes

  3. Tax exile - a person with a high income who moved to another country where taxes are lower than in their own country

  4. Direct taxation - the tax burden is directly imposed on individuals

  5. Indirect taxation - are paid by consumers by purchasing the goods and services

  6. Tax avoidance - the use of legal methods to minimize the amount of income tax owed by an individual or a business

  7. Tax evasion - illegal act of evading paying taxes

  8. Tax free - services that are not taxable

  1. Exempt from VAT - not charged from VAT

  2. tax bracket - the range of incomes taxed at given rates

  3. tax incentive - a reduction in taxes that encourages companies or people to do something that will help the country's economy

  4. tax rebate - money paid back to a person or company when they have paid too much tax