UK Taxes

Property taxes are called Council Tax, and is very similar. It is payable in monthly installments if you like, and easiest by direct debit. It is calculated by property values and number of occupants. You can get an idea what your cost will be by going to Up My Street where you can find out many many things about the neighborhoods of your choice.

Income Tax is very similar, taken from your pay, but is more of a flat tax. No forms to fill out every year unless you are self employed. That said, there’s no looking forward to a refund either. The regulations on whether or not you pay taxes if you are not permanently staying in the UK is very complicated, their leaflets are available online. In the UK, you can obtain relief from double taxation if your overseas income is subject to tax both in the UK and in another country. The question is who to pay which income taxes to.

Apparently one must always file a US return if they have an income abroad, regardless of whether they owe, and there is a threshold where you do not owe taxes if you made less than $70,000 abroad. Get the advice of a specialized accountant to be certain of your US Tax liablities.

Sales taxes are nearly invisible, they are already calculated into costs of goods, so the price you see is the price you pay at the till or checkout. It is called VAT or Value Added Tax, and is 17.5%. It is applied to all goods/services except children’s clothes and some food products such as milk. For more information check HM Revenue and Customs.

Other taxes on such things as home or vehicle purchases, and utilities are also collected as well. Some people may also be subject to inheritance, capital gains, and other such taxes. Petrol is highly taxed as well as cigarettes.

Source: OECD, 2005 data

Info about child benefit and tax credits