Tax credit: Difference between revisions
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imported>Doug Williamson (Update. Source: CIOT https://www.tax.org.uk/sites/default/files/file_uploads/160129%20Draft%20Finance%20Bill%202016%20Clauses%202-3%20Dividend%20nil%20rate%20and%20dividend%20tax%20credits%20-%20CIOT%20comments.pdf) |
imported>Doug Williamson (Add link.) |
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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. | ||
| Line 28: | Line 21: | ||
* [[Credit]] | * [[Credit]] | ||
* [[Credit relief]] | * [[Credit relief]] | ||
* [[Deductions]] | * [[Deductions]] | ||
* [[Dividend]] | * [[Dividend]] | ||
* [[Expense relief]] | |||
* [[Foreign tax credit]] | * [[Foreign tax credit]] | ||
* [[Imputation system]] | * [[Imputation system]] | ||
* [[Income Tax]] | * [[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.
