Margin and Marginal rate of tax relief: Difference between pages

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1. ''Accounting.''
The rate of tax at which a taxpayer would effectively save tax on the additional tax relieved expenditure if the total tax relieved expenditure increased by a small amount.
 
Profit margins measure the surplus of revenues over relevant costs, often expressed as a percentage.
 
Profit margins are usually expressed as a percentage of revenues, for example in the Net profit margin.
 
 
Less commonly, margins can also be expressed as a margin (percentage) on relevant costs.
 
Gross profit measured as a percentage of costs is also sometimes known as ''markup'', an amount added to costs to determine a selling price.
 
 
2. ''Banking.''
 
Net interest margin (NIM).
 
 
3. ''Bank lending.''
 
Lending margin is a percentage amount added explicitly to a market reference rate, to calculate the total rate of interest payable by a borrower.
 
 
4. ''Derivatives markets.''
 
Margin is a refundable cash deposit payable by market participants to protect other participants in the market against the risk of a default.
 
 
5. ''Financing.''
 
An amount implicitly built in to a total interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.
 
 
6. ''Secured lending.''
 
An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset.
 
Also known as a 'haircut'.
 
 
7.  ''Project planning and management.''
 
A ''safety margin'' is an allowance for worsening of a key input or variable in a project.
 
 
8.
 
Any other difference, usually a relatively small difference compared with the amounts themselves being compared.
 
For example, forward margin in foreign exchange markets.


For example the marginal rate of tax relief on debt servicing costs, assuming a small increase in the total amount of debt finance.


== See also ==
== See also ==
* [[Alternate Base Rate]]
* [[Marginal rate of tax]]
* [[Bank margin]]
* [[Marginal relief]]
* [[Collateral]]
* [[EMIR]]
* [[Exchange traded]]
* [[Forward margin]]
* [[Futures]]
* [[Haircut]]
* [[Initial margin]]
* [[Maintenance margin]]
* [[Margin call]]
* [[Margin compression]]
* [[Margin of safety]]
* [[Margin on costs]]
* [[Margin risk]]
* [[Marginal]]
* [[Margining]]
* [[Markup]]
* [[Net profit margin]]
* [[NII]]
* [[NIM]]
* [[Over the counter]]
* [[Profit margin]]
* [[Stepped margin]]
* [[Sustainability Linked Loan Principles]]
* [[Tax sparing]]
* [[Variation margin]]
* [[WGMR]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

Revision as of 08:18, 8 October 2013

The rate of tax at which a taxpayer would effectively save tax on the additional tax relieved expenditure if the total tax relieved expenditure increased by a small amount.

For example the marginal rate of tax relief on debt servicing costs, assuming a small increase in the total amount of debt finance.

See also