AN3928 Busines and Corporate taxation Adam Hughes
AN3928 Week 1
UK tax system and SDGs:
Learning outcomes:
- Explain, critically evaluate and critically analyse the overall scope and objectives of
the UK tax system with respect to corporate taxation.
- Critically evaluate the ethical issues surrounding tax and the implications of
non-compliance and tax avoidance, emphasizing companies.
- Calculate UK tax liabilities arising from corporation tax, value-added tax (VAT) and
capital gains tax.
- Understanding and articulating the role taxation policy can play in the
achievement of the UN’s sustainable development goals.
UK tax competitiveness:
Strengths:
- The corporate income tax rate is 19% per cent, below the OCED average (23.6%).
- The UK has a territorial tax system exempting both foreign dividend and capital
gains income without any country limitations.
- The UK tax treaty network with 130 countries is the broadest in the OECD.
Weaknesses:
- The top personal income tax rate on dividends is 39.35%, well above the OECD
average (24.2%).
- The real property tax burden is among the highest in the OECD.
- The VAT at a rate of 20% applies to less than half of the potential consumption tax
base.
The tax gap:
- The tax gap is the difference between the amount of tax that should, in theory, be
paid to HMRC, and what is actually paid.
- The tax gap provides a useful tool for understanding the relative size and nature
of non-compliance.
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AN3928 Week 1
UK tax system and SDGs:
Learning outcomes:
- Explain, critically evaluate and critically analyse the overall scope and objectives of
the UK tax system with respect to corporate taxation.
- Critically evaluate the ethical issues surrounding tax and the implications of
non-compliance and tax avoidance, emphasizing companies.
- Calculate UK tax liabilities arising from corporation tax, value-added tax (VAT) and
capital gains tax.
- Understanding and articulating the role taxation policy can play in the
achievement of the UN’s sustainable development goals.
UK tax competitiveness:
Strengths:
- The corporate income tax rate is 19% per cent, below the OCED average (23.6%).
- The UK has a territorial tax system exempting both foreign dividend and capital
gains income without any country limitations.
- The UK tax treaty network with 130 countries is the broadest in the OECD.
Weaknesses:
- The top personal income tax rate on dividends is 39.35%, well above the OECD
average (24.2%).
- The real property tax burden is among the highest in the OECD.
- The VAT at a rate of 20% applies to less than half of the potential consumption tax
base.
The tax gap:
- The tax gap is the difference between the amount of tax that should, in theory, be
paid to HMRC, and what is actually paid.
- The tax gap provides a useful tool for understanding the relative size and nature
of non-compliance.
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