Miscellaneous Taxes

What is an 'indirect tax'?

Evaluated tax is an indirect tax. Indirect tax is one which is paid by consumers on goods and services they buy rather than a direct tax which is levied on the income and gains and profits which a person makes.

What is a stealth tax?

A stealth tax is a term of art. It was coined, I think, in the late 1990's to describe tax increases, which were hidden in the way the tax system worked. And so they were stealthy, and were not immediately obvious to people. Some people have said that the way that some allowances and tax rates are not updated in line with inflation amounts to a stealth tax. If we look at inheritance tax, for example, the current exemption is 300000 pounds. People say that if that had been increased in line with inflation since that tax was first introduced, the exemption would be worth somewhere between 400000 and 500000 pounds. Perhaps that's an example of a stealthy way of collecting taxes.