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Basic rate tax |
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Basic rate taxThe main rate of income tax in the UK, which for the year 2003-2004 is 22%. The rate is applied to each individual's Taxable Income which is calculated as:Income - Reliefs - AllowancesThe basic rate is only applied to the income between £1,961 and £30,500, as the following table illustrates.£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58Over £30,500: tax rate is 40% (higher rate)Similar MatchesNational Insurance (NI) Basic PensionNational Insurance (NI) Basic PensionThe basic state pension funded by a person's National Insurance Contributions over his working life and part of the National Insurance Pension. The rate at which the basic pension is paid is dependent on the person's National Insurance contributions record over his working life. Basic sum assuredBasic sum assuredA term used in conjunction with policies such as low cost endowment assurance and low start endowment assurance.These sorts of policies operate on a 'with profits' basis and often in conjunction with repayment of a loan or mortgage. If the policyholder dies during the term, a guaranteed death benefit repays the loan.However, to guarantee to pay the entire loan at maturity would incur very high premiums. Accordingly, a policy with lower premiums guarantees to repay only a proportion of the loan amount at maturity (the basic sum assured). The expectancy then is that the balance will be repaid out of reversionary and (possibly) terminal bonuses. Basic business strategiesBasic business strategiesKey strategies a firm intends to pursue in carrying out its business plan. Basic balanceBasic balanceOne of the more frequently used measures of the balance of payments surplus or deficit under pegged exchange rates, the basic balance was equal to the current account balance plus the balance of long-term capital flows. Basic state pensionBasic state pensionSee 'state pension'. Further SuggestionsBasic import priceBasic balance Basic valuation Basic IRR rule |
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