1513 SUBSIDY
-Created by Thomas Wolsey and used by all Tudor monarchs
-each individual assessed on their income by each personas ability to pau, based on wealth and property
-tax each person pays is based on these assessments, but only had to pay tax on one category, the one in which they were wealthiest
-seperate assessment for nobility, who were taxed based on rank (higher rank=higher tax)
-local officials appointed for each county whose job it was to assess under oath what each officials wealth was.
-system reduced amount of resentment and ensured wealthier contributed more to taxation
-successful and repeated by Wolsey in 1514, 1515 and 1523.
-1534 cromwell asked parliament for a peacetime subsidy, unprecedented. justified the request on the grounds that Henry had rules for 25 years and his loyal subjects ought to support him in this by paying tax- parliament accepted
-by start of Elizabeth, parliament regular granting subsidies yielding £140,000 each time. by end of year, £80,000 showing effectiveness of increasing royal income from taxation was not sustained.
PROBLEMS WITH TAXATION SUBSIDY UNDER ELIZABETH
-Under Elizabeth, assessment of the subsidy was allowed to stagnate
-permitted the rates at which tax was paid to become fixed- those who paid tax on the value of their land had to pay 4 shillings for every pound their land was worth.
-did not take inflation into account so government income from subsidies fell
-system became increasingly corrupt.
-after 1563, each taxpayers assessment was accepted as accurate without oath to support claims
-most taxpayers claimed they had less income than they really did so were assessed on lower income and tax reduced.
-William Cecil made 4000 a year, but claimed £133
-this corruption contributed to political tensions of the 1590s