West Indies Vs England : The comparison of 10 tax facts you are unaware:
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West Indies Vs England : Bahamas In West Indies As Tax-Free Nation
Bahamas citizens do not pay taxes on income, inheritance, gifts, or capital gains. The country’s lack of income and corporate profit taxes has seen it become a popular drawcard for high net-worth individuals moving to the Bahamas and becoming residents for tax purposes to avoid high taxes in their home countries, including a number of high profile people such as Eugenie Bouchard and Sean Connery.
Tax residency certificates are issued to individuals who spend at least 90 days in the Bahamas and under 184 days in any other single country and purchase a property worth in excess of $1.5 million.
Tax revenues made up 22.4% of gross domestic product (GDP) in the Bahamas in 2016.The Bahamas has not entered into any double tax agreements.
What is the Source of Revenue for Bahamian Government
The Bahamian government uses revenue from sources like VAT and stamp taxes. There are strict laws prohibiting illicit financial activity such as money laundering.
Tax-Free Allowances In England
You have tax-free allowances for savings interest and dividend income, if you own shares in a company.
The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on.
Your Personal Allowance may be bigger if you claim Marriage Allowance or Blind Person’s Allowance. It’s smaller if your income is over £100,000.
Personal income tax rates
Income tax is charged at graduated rates, with higher rates of income tax applying to higher bands of income. Tax is charged on total income (from all earned and investment sources) less certain deductions and allowances.
In Autumn 2022, it was announced that the current personal allowance and certain tax thresholds would be frozen until April 2028.
The main allowance is a tax-free amount known as the ‘personal allowance’, which is 12,570 pounds sterling (GBP) in 2024/25. Most individuals can claim a personal allowance, unless they are claiming the remittance basis (see below) or their income is over GBP 125,140. If one’s income is over GBP 100,000, one’s personal allowance will be reduced by GBP 1 for every GBP 2 that one’s income exceeds GBP 100,000.
The net amount after allowances is usually referred to as an individual’s taxable income. The graduated rates of income tax vary slightly depending on whether the income is from earnings or investments.
Basis of taxation in the United Kingdom
Please note that, in the March 2024 Budget, the government announced plans to abolish the current tax regime for non-UK domiciled individuals. The following sections set out the rules as currently in place in the United Kingdom, but it must be noted that these are unlikely to remain in force beyond the current 2024/25 tax year. For more information on the expected changes, please see the Significant developments section.
An individual’s basis of taxation in the United Kingdom depends on both their residence and domicile position.
If an individual is resident and domiciled in the United Kingdom, they will be taxed on their worldwide income and capital gains.
If an individual is not a UK tax resident, they will generally be subject to income tax only on their UK-source income.
Currently, if an individual is resident but neither domiciled nor deemed domiciled in the United Kingdom, they can elect to use the remittance basis of taxation. This means that, in general, their non-UK income (and capital gains) are only taxed if they are remitted to or used in the United Kingdom. Different rules apply in respect of employment income.
