Tax credit: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand to incorporate UK personal tax credits as definition 3 & to link to Expense relief page. Sources: http://www.hmrc.gov.uk/taxcredits/start/who-qualifies/what-are-taxcredits.htm; http://www.hmrc.gov.uk/forms/tc825.pdf) |
imported>Doug Williamson (Add link.) |
||
| (7 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
1. | |||
A reduction in a tax liability, directly reducing the net amount of tax payable. | A reduction in a tax liability, directly reducing the net amount of tax payable. | ||
For example, the tax credit under | For example, the tax credit under a tax 'imputation system' which wholly or partially imputes to the shareholders some of the corporation tax paid by companies on the income out of which dividends are paid. | ||
2. | |||
Less commonly, a smaller indirect reduction in a tax liability, by way of a deduction from the net taxable profits. | Less commonly, a smaller indirect reduction in a tax liability, by way of a deduction from the net taxable profits. | ||
3. | |||
''UK personal tax''. | ''UK personal tax''. | ||
A payment from the UK tax authorities to an individual with childcare responsibilities, low income, or both. | A payment from the UK tax authorities to an individual with childcare responsibilities, low income, or both. | ||
| Line 24: | Line 21: | ||
* [[Credit]] | * [[Credit]] | ||
* [[Credit relief]] | * [[Credit relief]] | ||
* [[Deductions]] | |||
* [[Dividend]] | |||
* [[Expense relief]] | * [[Expense relief]] | ||
* [[Foreign tax credit]] | * [[Foreign tax credit]] | ||
* [[Imputation system]] | * [[Imputation system]] | ||
* [[Income Tax]] | |||
* [[Tax]] | |||
* [[Tax relief]] | * [[Tax relief]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Latest revision as of 08:54, 6 July 2022
1.
A reduction in a tax liability, directly reducing the net amount of tax payable.
For example, the tax credit under a tax 'imputation system' which wholly or partially imputes to the shareholders some of the corporation tax paid by companies on the income out of which dividends are paid.
2.
Less commonly, a smaller indirect reduction in a tax liability, by way of a deduction from the net taxable profits.
3.
UK personal tax.
A payment from the UK tax authorities to an individual with childcare responsibilities, low income, or both.
