Tax credit: Difference between revisions
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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 (Layout.) |
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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. | ||
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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. | ||
Revision as of 11:52, 13 May 2016
1.
A reduction in a tax liability, directly reducing the net amount of tax payable.
For example, the tax credit under the '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.
In some circumstances a net amount of tax repayable, resulting from certain types of tax credit, can be refunded to the taxpayer in cash.
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.
