Institutional Characteristics And Local Enlightenment Of British Income Tax Law

Individual income tax is the tax levied on the taxable income of the individual.As an important tax policy,the individual income tax system has the basic functions of providing financial support,adjusting the income distribution and stabilizing the economic level.In recent years,the academic community has paid more and more attention to its value in fairness and social welfare."Ability-to-pay" means that tax should be levied according to the actual burden of the individual.Individual income tax is considered to be the most conformable tax with the principal of "Ability-to-pay".Proceed with the basic connotation of British income tax law and "Ability-to-pay",this paper explores the development of income tax system and tax law theory from the perspective of history,and studies the concrete manifestation of "Ability-to-pay"principle in British income tax law.The current British income tax law stipulates the synthesis-classification-combined income tax system as the levy mode,and forms tax system with deductions,allowances,credits and tax rates based on the taxpayer's actual tax burden capacity.In this way,Individual income tax contributes the most tax revenue in Britain.The income tax system and tax law has become the object for the rest of the world to study and follow.Compared with the relatively mature synthesis-classification-combined income tax system in Britain,China's classified income tax system stipulated in income tax law in now under a fierce debate of reform,among which the levy mode,deductions,and tax rate in British income tax law under the "Ability-to-pay" principle could be used for reference in establishing China's individual income tax system,so that individual income tax could really play its role in distribution justice and welfare.