|
|
Taxable pay |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Taxable 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)Similar MatchesTaxable incomeTaxable 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) 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 transactionTaxable transactionAny transaction that is not tax-free to the parties involved, such as a taxable acquisition. Taxable eventTaxable eventAn event or transaction that has a tax consequence, such as the sale of stock holding that is subject to capital gains taxes. Taxable incomeTaxable incomeGross income less a variety of deductions. Further SuggestionsTaxable municipal bondTaxable year Taxable acquisition taxable earnings |
|
|
|