Direct taxes

Cards (6)

  • Direct taxes are levied on income and wealth
  • Income tax
    A progressive tax on individuals' earnings
  • Corporation tax
    A tax on company profits
  • Higher rates of corporate tax can discourage future investment whereas lower rates attract new firms
  • Capital gains tax (CGT)
    A tat of the profit made when selling as asset (e.g. a property, shares) that has increased in value. It is levied only on the profit made from sale, not on the total selling price
  • Inheritance tax
    A tax on wealth passed on after death (UK threshold is £325,000)