An overview of all UK taxes.
This document provides an overview of the UK tax system, describing how each of the main taxes works and setting their current state into a historical context going back to 1979. It was last updated in November 2016. This survey - which IFS has been publishing since 1998 - is being replaced by the 'taxes explained' Taxlab articles.
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.
Private pensions are tax-favoured relative to most other forms of saving. The extent of the tax advantages varies between people.
Corporation tax is the fourth biggest source of revenue for the UK Treasury and is forecast to raise around £40 billion in 2021–22.
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.