Tax relief: Difference between revisions

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imported>Doug Williamson
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* [[Tax avoidance]]
* [[Tax avoidance]]
* [[Tax credit]]
* [[Tax credit]]


[[Category:Accounting,_tax_and_regulation]]

Revision as of 08:36, 8 October 2013

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