Information for non-taxpayers
Income tax
Income tax is a tax which is payable on any money you receive - like your wage, pension or any income you get from any savings and investments (unless you save or invest through a tax free savings product like an Individual Savings Account (ISA) or the tax free products offered by National Savings and Investments. The rate of income tax that you pay is tiered and depends on what you earn. For up to date tax levels, visit www.inlandrevenue.gov.uk/rates/index.htm
Capital gains tax (CGT)
This tax is payable on any gains you make when you sell assets, like shares or a second home. Everyone has a minimum amount of money they can make from these types of assets before you have to pay capital gains tax, and some assets are exempt. For up to date tax levels, visit www.inlandrevenue.gov.uk/rates/index.htm
Stamp duty
Stamp duty is a tax that you have to pay when you buy a house, or when you are buying stocks or shares. This is paid at the time of purchase, for example, when you buy shares or a house.
For current stamp duty limits visit www.inlandrevenue.gov.uk/rates/index.htm
Inheritance tax
Inheritance tax is a tax you pay on whatever you leave to your loved ones, known as 'your estate', after you pass away, if your estate is worth over a minimum amount. For more information visit our inheritance tax section. For current inheritance tax limits visit www.inlandrevenue.gov.uk/rates/index.htm
Tax-free savings limits
One of the main ways to save tax free is through taking out an Individual Savings Account (ISA). The current limits are that residents in the UK who are 18 or over can invest up to £7,000 in a Maxi ISA or up to £3,000 in a Mini ISA during the current tax year. The government has promised to keep these levels the same until 2005/2006. For more information, visit our ISA section.
National savings and investments are also a way of saving without paying tax. Some types of National Savings and investments products are tax free, whilst others pay the interest gross - which is useful if you are a non-taxpayer. Visit our tax-free saving section for more information or visit www.nationalsavings.co.uk.
Information for non-taxpayers
To find out what to do if you are a non-taxpayer speak to an Independent Financial Adviser or a Tax Adviser, but to get you started make sure that you get:
- R85 form from banks or building societies - this means that non-taxpayers who complete this form can get interest paid on any savings and investments without tax
- If you've already paid tax - get a R40 office from the tax office to reclaim any interest you've already paid
For more information visit www.inlandrevenue.gov.uk/rates/index.htm or call the Taxback Helpline on 0845 077 6543.