Income Tax

Income Tax is a tax on the yearly profits arising from property, professions, trades, and offices. In the year 1842, the revenue of the United Kingdom being insufficient to meet the public expenditure, it was decided to revive a tax which had in past times been levied in emergencies. Accordingly this tax was reimposed - in the first instance for three years only; but at the expiration of that term, and ever since, by renewals, its existence has been prolonged, though its rate in the pound has frequently varied by successive Acts of Parliament. In the case of property, the tenant or occupier is primarily liable to pay I the tax, but he is entitled to deduct a proportionate part from his rent, and he cannot by any agreement with his landlord deprive himself of this right. Where the income - from all sources - is under £160 a year, it is free of income tax, and any sums paid therefor in respect of property are recoverable for a period of three years from their payment. There is an office at Somerset House specially appointed to deal with applications for return of income tax. Also where the income does not exceed £400 per annum, an allowance of £120 per annum is made, the tax is calculated upon the difference, and there is also in all cases a deduction allowed for life insurance premiums to a limited extent.