Active

1. Pensions.

Abbreviation for an active member of a pension scheme.

2. Tax.

For tax purposes, active income includes wages, salary and business profits.

Contrasted with 'passive' income, which is broadly investment income.

3. Tax.

For tax purposes a company is normally defined as active - and potentially liable for Corporation Tax - when it does any one (or more) of the following:

• Carrying on any business activity or trade or profession.
• Buying and selling goods with a view to profit.
• Providing services.
• Earning interest.
• Managing investments.
• Receiving any other income.

4. Investment management - strategies.

Active investment funds engage investment managers to select their investments.

5. Wider context.

More generally, any structure involving relatively more judgement or initiative.

See also

• Active bookrunner
• Active fund
• Active income
• Active member
• Corporation Tax
• Deferred
• Dormant
• Passive
• Principles for Responsible Investment
• Service