Tax credit

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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.

See also