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.
Less commonly, a smaller indirect reduction in a tax liability, by way of a deduction from the net taxable profits.
UK personal tax.
A payment from the UK tax authorities to an individual with childcare responsibilities, low income, or both.