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Taxable income |
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Taxable incomeThe amount of an individual's annual income on which tax is payable defined as:Taxable income = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the 'personal allowance' which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.So someone with Income of £20,000 who has made pension contributions in the year of £1,000 will have total income of £19,000, and his taxable income will be £19,000 less a personal allowance of £4,615 = £14,385.The amount of tax he has to pay will be determined by the tax bands in operation in the year in question. For 2003-2004, the bands are:£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)Taxable incomeGross income less a variety of deductions.Taxable income Similar MatchesTaxable payTaxable payThe amount of an individual's annual income on which tax is payable defined as:Taxable pay = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the 'personal allowance' which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.So someone with income of £20,000 who has made pension contributions in the year of £1,000 will have Total Income of £19,000, and his Taxable income will be £19,000 less a personal allowance of £4,615 = £14,385.The amount of tax he has to pay will be determined by the tax bands in operation in the year in question. For 2003-2004, the bands are:£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) Taxable yearTaxable yearThe 12-month period an individual uses to report income for income tax purposes. For most individuals, their tax year is the calendar year. Corporate taxable equivalentCorporate taxable equivalentRate of return required on a par bond to produce the same after-tax yield to maturity that the quoted premium or discount bond would generate. Taxable municipal bondTaxable municipal bondTaxed private-purpose bonds issued by the state or local government to finance prohibited projects such as sports stadiums. Taxable acquisitionTaxable acquisitionA merger or consolidation that is not a tax-fee acquisition. The selling shareholders are treated as having sold their shares. Further SuggestionsTaxable transactiontaxable earnings Taxable event |
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