ABSTRACT
Income Tax has a long history in the UK, having been introduced in the first instance during the Napoleonic Wars when 10% of gross income was levied in order to raise finance to prosecute the European War. Income Tax only became a permanent feature of British tax structure in 1842, when it was reintroduced at the standard rate of 7d in the £ (i.e. 3%). The highest rates of tax have been reached during times of war (Crimean War 7%, 1914-18 War 30%, Second World War 50%); currently the basic rate for Income Tax in the UK is 25p in the £.
