A fixed amount is added to the selling price. Council Tax is a local tax on property. All properties are valued and the amount of council tax paid depends on the value band which the property falls into. Corporation tax is a tax on company profits. Petroleum revenue tax is a tax on oil taken from the North Sea.
Inheritance tax is a tax on the transfer of money and property.
Method of Collection Direct taxes are paid straight to the Inland Revenue. They are therefore taxes on income. Indirect taxes are first collected by the seller and then passes on to Customs and Excise. These taxes are therefore taxes on expenditure. Some taxes are fairer than others.