Inheritance tax explained
Inheritance tax is levied on wealth bequeathed at death, or given away shortly before death, above a threshold. Around 5% of all deaths attracted inheritance tax in 2022–23.
Share paying inheritance tax and revenue generated
The tax penalty on employment
Are preferential tax rates for the self-employed justified?
Lower headline tax rates on self-employment than on employment aren’t justified by differences in benefits or employment rights, and are poorly targeted at improving investment incentives.
Should income from business be taxed like income from employment?
There is a strong case to tax business income at the same rates as employment income – if the tax base is also reformed.
Should tax be used to encourage entrepreneurship?
There are reasons to promote entrepreneurship, but low headline tax rates on income from business are poorly targeted at that goal.
Taxation of private pensions explained
Private pensions are tax-favoured relative to most other forms of saving. The extent of the tax advantages varies between people.
Concentration of corporation tax payments, 2018–19
Corporation tax explained
Corporation tax is the fourth biggest source of revenue for the UK Treasury and is forecast to raise around £40 billion in 2021–22.
The distributional impact of National Insurance contributions (2024–25)
National Insurance contributions explained
National Insurance contributions (NICs) are the UK’s second-biggest tax, expected to raise just under £170 billion in 2024–25 – around a sixth of all tax revenue.