Margin and Marginal relief: Difference between pages

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imported>Doug Williamson
(Update 4th definition.)
 
imported>Doug Williamson
(Sources: http://www.hmrc.gov.uk/ct/forms-rates/claims/marginal-rate.htm; http://www.hmrc.gov.uk/manuals/cgmanual/CG76612.htm)
 
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1. ''Accounting.''
#''UK Corporation Tax''.  Tax relief for companies or other organisations whose taxable profits are in between the upper limit for the (reduced) small companies' rate and the lower limit for the (full) main rate of Corporation Tax. Marginal relief smooths the transition from the reduced rate of corporation tax to the full rate.
#''UK Capital Gains Tax (CGT)''.  Tax relief in relation to disposals of assets for proceeds which are marginally above the threshold for total exemption from CGT, reducing the amount of tax would otherwise be payable.


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 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.




== See also ==
== See also ==
* [[Alternate Base Rate]]
[[Marginal rate of tax relief]]
* [[Bank margin]]
* [[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:The_business_context]]
[[Category:Financial_products_and_markets]]

Revision as of 11:05, 15 September 2013

  1. UK Corporation Tax. Tax relief for companies or other organisations whose taxable profits are in between the upper limit for the (reduced) small companies' rate and the lower limit for the (full) main rate of Corporation Tax. Marginal relief smooths the transition from the reduced rate of corporation tax to the full rate.
  2. UK Capital Gains Tax (CGT). Tax relief in relation to disposals of assets for proceeds which are marginally above the threshold for total exemption from CGT, reducing the amount of tax would otherwise be payable.


See also

Marginal rate of tax relief