Tax relief

A deduction allowed by law in calculating a tax liability. Most often by subtracting the deductions from (otherwise) taxable profits, before calculating the amount of tax payable on the reduced net taxable profits. This - less valuable - type of tax relief is sometimes known as 'expense relief'.

Less commonly, more generous tax relief is given by deducting an amount directly from the amount of a tax liability. This - more valuable - type of tax relief is sometimes known as 'credit relief'.

Tax relief of the more generous 'credit relief' kind is also often called a 'tax credit'.

However (potentially confusingly) the term 'tax credit' may also - less commonly - refer to 'expense relief', as discussed above.

See also

• Charge on income
• Credit relief
• Deductions
• Disallowable expenditure
• Double tax treaties
• Double taxation relief
• Expense relief
• Group relief
• Rollover relief
• Tax avoidance
• Tax credit