The
Inland Revenue was, until April 2005, a
departmentHer Majesty's Government of the United Kingdom contains a number of Cabinet ministers who are usually called secretaries of state when they are in charge of Government departments called ministerial departments...
of the British Government responsible for the collection of
directThe term direct tax generally means a tax paid directly to the government by the persons on whom it is imposed.-General meaning:In the general sense, a direct tax is one paid directly to the government by the persons on whom it is imposed...
taxTo tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
ation, including
income taxAn income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
,
national insurance contributionsNational Insurance in the United Kingdom was initially a contributory system of insurance against illness and unemployment, and later also provided retirement pensions and other benefits...
,
capital gains taxA capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property...
,
inheritance taxIn the United Kingdom, Inheritance Tax is a transfer tax. It was introduced with effect from 18 March 1986 replacing Capital Transfer Tax.-History:...
,
corporation taxCorporation tax is a tax levied in the United Kingdom on the profits made by companies and on the profits of permanent establishments of non-UK resident companies and associations that trade in the EU. Prior to the tax's enactment on 1 April 1965, companies and individuals paid the same income tax,...
,
petroleum revenue taxPetroleum revenue tax is a direct tax collected in the United Kingdom. It was introduced under the Oil Taxation Act 1975, soon after Harold Wilson's Labour government returned to power and in the immediate aftermath of the 1973 energy crisis, and was intended to ensure "fairer share of profits...
and
stamp dutyStamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty...
. More recently, the Inland Revenue also administered the Tax Credits schemes, whereby monies, such as
Working Tax Credit (WTC)The Working Tax Credit is a state benefit in the United Kingdom made to people who work on a low income. It is a part of the current system of refundable tax credits introduced in April 2003 and is a means-tested social security benefit...
and
Child Tax Credit (CTC)A child tax credit is the name for tax credits issued in some countries that depends on the number of dependent children in a family. The credit may depend on other factors as well: typically it depends on income level. For example, in the United States, only families making less than $110K per...
, are paid by the Government into a recipient's bank account or as part of their wages. The Inland Revenue was also responsible for the payment of
child benefitChild benefit is a social security payment disbursed to the parents or guardians of children. Child benefit is means-tested in some countries.-Australia:...
.
The Inland Revenue was merged with HM Customs and Excise to form HM Revenue and Customs which came into existence on 18 April 2005. The former Inland Revenue is thus now part of HM Revenue and Customs, but it is still the name by which the tax gathering department of government is commonly known by British people and is often referred to as "the Tax Man".
History
The beginnings of the Inland Revenue date from 1665, when a Board of Taxes was set up following the introduction of special taxes to pay for the
Second Anglo-Dutch WarThe Second Anglo–Dutch War was part of a series of four Anglo–Dutch Wars fought between the English and the Dutch in the 17th and 18th centuries for control over the seas and trade routes....
. A central organisation to supervise the collection of the special taxes was required.
Taxes administered by the Board of Taxes included the land tax, first levied in 1692, together with an assortment of other assessed taxes, including taxes on houses,
windowsThe window tax was a significant social, cultural, and architectural force in England, France and Scotland during the 18th and 19th centuries. Some houses from the period can be seen to have bricked-up window-spaces , as a result of the tax.-Details:The tax was introduced in England and Wales under...
and dogs. Income tax was introduced in various forms in 1797, 1799, 1803 to 1816. and then reintroduced as an annual tax in 1842m which is formally renewed in each year's
Finance ActIn the UK, the Chancellor of the Exchequer delivers an annual Budget speech on Budget Day, outlining changes in spending, as well as tax and duty. The changes to tax and duty are passed as law, and each year form the respective Finance Act...
.
A separate Board of Stamps was created by the Stamps Act 1694. During the eighteenth and early nineteenth centuries, stamp duties were extended to cover
newspaperA newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
s,
pamphletA pamphlet is an unbound booklet . It may consist of a single sheet of paper that is printed on both sides and folded in half, in thirds, or in fourths , or it may consist of a few pages that are folded in half and saddle stapled at the crease to make a simple book...
s, lottery tickets, apprentices'
indentureAn indenture is a legal contract reflecting a debt or purchase obligation, specifically referring to two types of practices: in historical usage, an indentured servant status, and in modern usage, an instrument used for commercial debt or real estate transaction.-Historical usage:An indenture is a...
s, advertisements, playing cards,
diceA die is a small throwable object with multiple resting positions, used for generating random numbers...
,
hatA hat is a head covering. It can be worn for protection against the elements, for ceremonial or religious reasons, for safety, or as a fashion accessory. In the past, hats were an indicator of social status...
s,
gloveA glove is a garment covering the hand. Gloves have separate sheaths or openings for each finger and the thumb; if there is an opening but no covering sheath for each finger they are called "fingerless gloves". Fingerless gloves with one large opening rather than individual openings for each...
s,
patent medicinePatent medicine refers to medical compounds of questionable effectiveness sold under a variety of names and labels. The term "patent medicine" is somewhat of a misnomer because, in most cases, although many of the products were trademarked, they were never patented...
s,
perfumePerfume is a mixture of fragrant essential oils and/or aroma compounds, fixatives, and solvents used to give the human body, animals, objects, and living spaces "a pleasant scent"...
s,
insuranceIn law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
policies,
goldGold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
and
silverSilver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
platePlating is a surface covering in which a metal is deposited on a conductive surface. Plating has been done for hundreds of years, but it is also critical for modern technology...
,
hair powderDuty on Hair Powder Act 1795 was an Act of the Parliament of Great Britain levying a tax on hair powder. It was repealed in 1869....
and
armorial bearings (coats of arms)A coat of arms is a unique heraldic design on a shield or escutcheon or on a surcoat or tabard used to cover and protect armour and to identify the wearer. Thus the term is often stated as "coat-armour", because it was anciently displayed on the front of a coat of cloth...
.
In June 1833, a single body of Commissioners was set up to merge the revenues of stamps and taxes. The Board of Taxes and the Board of Stamps were formally combined under the Land Tax Act 1834.
The Board of Inland Revenue was created under the Inland Revenue Board Act 1849, after the Board of Excise and the Board of Stamps and Taxes were amalgamated. Responsibility for
excise taxesExcise tax in the United States is a indirect tax on listed items. Excise taxes can be and are made by federal, state and local governments and are far from uniform throughout the United States...
was transferred to the Board of Customs and Excise in 1909.
The 2004
BudgetA budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
included proposals to merge HM Customs and Excise with the Board of Inland Revenue to form a new department, HM Revenue and Customs (HMRC). The merger was implemented by the
Commissioners for Revenue and Customs Act 2005The Commissioners for Revenue and Customs Act 2005 is an Act of the Parliament of the United Kingdom which combined the Inland Revenue and HM Customs and Excise into a single government department, HM Revenue and Customs...
with effect from 18 April 2005.
See also
- Minister of Inland Revenue
The Minister of Inland Revenue is the political office of Minister for the department of Inland Revenue which is responsible for the collection of taxes. Minister of Inland Revenue is a title held by leaders in different countries...
- HM Revenue and Customs - Formed by the 2005 merger of the Inland Revenue and Customs and Excise
External links