Expert: Harry Hayfield - 9/1/2009

Question
Harry,
I am from the USA.  How does the taxing structure in the UK compare to here in the US?  I hear that your taxes are incredibly high.  Does everyone pay the same? You know here, each state taxes different amount(to everyone equally) and federal is depending on how much income you make etc...
I wanted to learn more about it, thinking of possibly relocating someday.  Maybe you also know a website I could research?  I can not read for too long due to a handicapp, so my attention span is limited, therefor my research time gets cut short.
thanks you.


Answer
The UK has two layers of taxation. Federal Taxation (for instance income tax and sales tax) and local taxation (which is basically the amount of money that a council needs to exist minus the amount of money that the federak government gives that council divided by the number of homes in that council area and then tallied on a sliding scale so the more expensive the house, the higher the tax bill)