Key Events- Introduction of the Income Tax- (1798)

The income tax was introduced to Britain in 1798 by William Pitt the Younger. Britain was suffering economically for various reasons so Pitt presented the idea of an income tax.  

• The initial idea was suggested by Henry Beeke, a fiscal expert (an expert on taxes and government revenue) who passed it on to Pitt. 
• Was published as an idea in Pitt's budget of December 1798 
• Was enforced a month later. 
• The purpose was for taxes to paid on people's earnings- for example, an income of £60 would require 2 pence to be paid. 
• In one year it managed to achieve an income of £6 million, which was £4 million off of what Pitt wanted to achieve.
•  It was Pitt's intent for the income tax to be a temporary measure, however this is not the case. 
• It did spend 26 years inoperative following its abolition by Henry Addington who saw it fit to only be used as a last resort during war
• It returned in 1842 under the Conservative Prime Minister, Sir Robert Peel and is still in use today.