However, a person who is resident and not 'domiciled' in Britain is usually liable for tax on income and capital gains originating abroad only if these are paid, used in, or brought to Britain. DTAs divide taxing rights between two countries to prevent the double taxation of the same income. DTAs often include provisions for exchanging information and settling inter-country disputes on tax matters. Britain and New Zealand have a Double Taxation Agreement. All companies resident in the UK, non-resident companies trading in the UK through a branch or agency, corporate bodies and unincorporated associations other than partnerships, are subject to corporation tax on their profits.
Local authorities are exempt.
The main rate from April 1998 is 31 percent. Capital Gains Tax Capital gains tax, introduced in 1965, applies to gains realised by individuals and trustees arising from the disposal of assets. For this purpose disposal includes a transfer of ownership by gift. Gains accrued up to 31 March 1982 are not taxed. Subsequent gains are indexed for inflation up until April 1998.