Which of the following are sources of income subject to UK income tax?
Okay, let's break down why profits from self-employment and income from property, savings, and dividends are subject to UK income tax. The UK tax system operates on the principle that income, which is money you *earn* or *gain* from investments, is taxable. This includes profits from running your own business (self-employment), rental income from properties you own, interest earned on savings accounts, and dividends received from owning shares in companies. Think of it this way: the government taxes the money you actively make or that your investments generate.
Now, let's consider why the other options are incorrect. Disability Living Allowance, Working/Child Tax Credit, Child Benefit, and Maternity Allowance are all forms of social security benefits. These are payments provided by the government to support individuals and families in specific circumstances, such as disability, low income, or having children. These benefits are generally *not* considered taxable income because they are designed to provide a safety net and are funded by taxes already collected. Taxing these benefits would essentially be taxing people on money the government is giving them to help with essential needs, which defeats the purpose of the benefit. It's important to remember that the UK tax system distinguishes between earned or investment income and social security benefits.
Tax is paid on earnings and investments, not on benefits designed to help people.