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Tax relief |
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Tax reliefThe government allows an artificially low tax rate to encourage purchases or savings such as with pensions and ISA's.Tax reliefAmounts which you can deduct from your annual income to reduce the amount on which you have to pay tax. For instance, if your income before deduction of reliefs is £20,000, and you made pension contributions in the year of £1,000, you could deduct £1,000 from £20,000 to produce a total income of £19,000. That is because pension contributions are payments on which the Inland Revenue allows you to get relief.From total income, you would also deduct any allowances, including your personal allowance of £4,615 in the year 2003-2004 for people under 65, to produce your taxable income.Similar MatchesImport reliefImport reliefUsually refers to some form of restraint of imports in a particular sector in order to assist domestic producers, and with the connotation that these producers have been suffering from the competition with imports. If done formally under existing statutes, it is administered protection, but it may also be done informally using a VER. Agricultural property reliefAgricultural property reliefA deduction of either 50% or 100% which is made from the value of land in the UK, Channel Islands or Isle of Man when it is assessed for inheritance tax purposes. Mortgage interest relief at sourceMortgage interest relief at sourceThe mechanism by which income tax relief was extended to a borrower on the interest paid on the first £30,000 of a mortgage on their main home.The system was known as MIRAS, and was operated by most building societies, banks and insurance companies, who would reduce the amount of interest eligible borrowers had to pay every month, and then claim the tax relief back from the Inland Revenue.The amount of relief available on MIRAS was gradually scaled down to 10% and ended altogether from 6th April 2000. Life assurance premium reliefLife assurance premium reliefA tax relief of 15% on the premiums paid into long-term insurance policies. Applies only to policies lasting for more than 10 years and issued before March 13, 1984. Rollover reliefRollover reliefA capital gains tax relief which applies when an individual disposes of a business or an asset used in a business and spends the proceeds on acquiring replacement assets during a qualifying period (normally up to one year before and up to three years after the date of the disposal of the original asset). Further SuggestionsDebt reliefdouble taxation relief taper relief holdover relief business property relief retirement relief Debt relief |
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