Tax credit: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Remove out of date example.) |
imported>Doug Williamson (Update.) |
||
| Line 3: | Line 3: | ||
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. | ||
Revision as of 17:09, 12 January 2018
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.
