| Term | Definition |
| Basic rate |
The normal rate of income tax. See also Starting rate and
Savings rate
|
| Capital gains Tax |
The tax you pay when you sell investments at a profit |
| Corporation Tax |
Tax paid by companies |
| Dividend rate |
A special rate of income tax on dividends |
| Domicile |
Your homeland. Usually the country where you were born.
But the definition is complicated in the context of Tax Credits -
see appropriate section. |
| Employee |
Someone who works for someone else |
| Employer |
A person or firm who employs people |
| Enquiry |
When the Revenue look into someone's tax return in detail |
| Higher rate |
The rate of income tax paid once your total income is over the
amount taxable at Basic rate (see Rates and Allowances)
|
| Income Tax |
Tax paid by individuals on their income |
| Inheritance Tax |
A tax paid particularly on an estate on death,
but also on some lifetime gifts |
| National Insurance |
Contributions (linked to some Social Security
benefit rights, )but collected as a form of tax on employment incomes (Class 1)
and self employment incomes (Class 4). There is also a flat rate Class 2 payable by
the self-employed. |
| Ordinarily Resident |
Normally living in the UK. See also definitions under Tax Credits |
| PAYE |
Pay As You Earn. Tax is taken from your pay by your employer before you
get it
|
| Profit |
The difference between business income and expenses.
Your tax bill is based on your profit if you work for
yourself.
|
| Resident |
Living in the UK. See also definition under Tax Credits |
Savings rate  |
A special rate of tax on savings |
| Starting rate |
The lowest rate of income tax. Your first slice of income is
taxed at this rate
|
| UK |
England, Wales, Scotland and Northern Ireland |
| Value Added Tax |
A tax charged by registered businesses on the sale of goods and services. |
