- 1) The tax allowance associated with the dividend paid by a company. The shareholder is given allowance for the tax paid at source by the tax credit, at the same rate, 10-90; i. e. a dividend of £90 received by the shareholder has an associated tax credit of £10. For those whose taxable income does not exceed £32, 400 there is no further tax to pay. For those whose income is higher, the excess is chargeable at a rate of 32. 5%.2) Any other allowance against a tax liability.3) In the UK, a social security payment such as the Working Tax Credit or Child Tax Credit that is administered by HM Revenue and Customs. Despite their titles, neither of these payments affects the amount of tax that is payable.
Big dictionary of business and management. 2014.
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tax credit — n: an amount that may be subtracted from the sum of tax otherwise due and that is distinguished from a deduction applied to gross income in the calculation of taxable income compare exemption Merriam Webster’s Dictionary of Law. Merriam Webster.… … Law dictionary
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tax credit — tax credits N COUNT A tax credit is an amount of money on which you do not have to pay tax. The president proposed to provide tax credits to businesses that allow workers time off … English dictionary
Tax credit — The term tax credit describes two different concepts:*The first is a recognition of partial payment already made towards taxes due. *The second is a state benefit paid to employees through the tax system, which has the effect of increasing… … Wikipedia
tax credit — A direct dollar for dollar reduction in tax allowed for expenses such as child care and R&D for building low income housing. Compare tax deduction. Bloomberg Financial Dictionary Additional amount on dividends paid by a company resident in France … Financial and business terms
tax credit — 1) The tax allowance associated with the dividend paid by a company. The shareholder is given allowance for the tax paid at source by the tax credit, at the same rate, 10/90; i.e. a dividend of £90 received by the shareholder had an associated… … Accounting dictionary
tax credit — An amount subtracted from an individual s or entity s tax liability to arrive at the total tax liability. A tax credit reduces the taxpayer s liability dollar for dollar, compared to a deduction which reduces taxable income upon which the tax… … Black's law dictionary
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tax credit — /ˈtæks krɛdət/ (say taks kreduht) noun a credit received by a taxpayer in relation to certain items of expenditure or income, and deducted directly from income tax otherwise payable … Australian English dictionary
tax credit — A credit against income tax itself, as distinguished from a deduction which applies only to reduce the income. The sum owing a taxpayer for overpayment. Internal Revenue Code § 6402(a) … Ballentine's law dictionary