What are two types of income that residents of the UK must pay tax on?

Okay, let's break down why wages and income from property, savings, and dividends are taxable in the UK. The UK operates a progressive tax system, meaning the more you earn, the more tax you pay. This system is largely funded by income tax, which is a tax levied on various forms of income. Now, wages from paid employment are the most common form of income, and they're definitely taxable. Think of it as a direct deduction from your earnings before you even receive them, through the Pay As You Earn (PAYE) system. Similarly, income generated from property, savings accounts, and dividends from investments is also subject to income tax. This is because the government considers these as gains or profits that contribute to your overall financial standing. The logic is that if you're benefiting financially, you contribute to the tax pool. Student loans and payday loans, on the other hand, aren't income; they're debts. You're borrowing money, not earning it, so they aren't subject to income tax. In fact, you're repaying them from your taxed income!