Tax Glossary UK - Glossario Tasse Imposte Fiscale UK



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Death Benefits

Benefits paid to a beneficiary upon the death of a person.

These benefits can include payouts from a pension scheme or life insurance policy.

Debt Collection

The means of chasing payment of an outstanding liability.

If you have an outstanding debt and employ a professional debt collector, the costs of employing such a service are an allowable tax deduction.

Debtors

People who owe you money.

You need to include in your business accounts any sales that you have made even if you have not collected the money for them.

If you have a balance sheet, debtors will appear as an asset of your business.

Deduction

Something which reduces the amount of your taxable income or your chargeable gains.

A business expense, such as the purchase of stationery supplies, is a deduction that can be used to reduce the amount of your taxable business profits.

Indexation allowance (to April 1998) is a deduction that can be made in the calculation of your chargeable gain on the disposal of an asset.

Deed of Covenants

Regular annual payments paid using funds from your taxable income under a legally binding agreement.

Most commonly used for regular payments to charities, but may also be used for certain payments in connection with your business, such as payments to retiring partners.

Deferment

You can apply to the DSS (Department of Social Security) to defer payment of national insurance contributions if it is likely that you would otherwise pay more than the permitted maximum, or if some of your business income is liable to Class 1 employees national insurance contributions.

Any remaining liability is collected by the DSS after the end of the tax year.

Deficiency Relief

Tax relief given on the maturity, surrender or sale of a life insurance policy, if the excess of the total receipts from the policy over the total premiums paid is less than the amounts that have already been taxed on partial surrenders and withdrawals in earlier tax years.

The relief cannot exceed the amounts which have already been taxed.

De Minimis

A lower limit below you need not do something.

For example, if you have given your children money and they receive interest on that money, you do not need to include that income on your Tax Return if it is less than a de minimis limit of £100.

Dependent Child

Any child under 16, or a child aged 16 or over who is in full time education or who needs full time care.

Deposit

Sum of money which is placed with a deposit taker (a bank for example), usually in exchange for interest on the money deposited.

Deposit Takers

Bank of England approved organisations that can accept deposits generally banks, building societies and so on. (Back to top)

Depreciation

A deduction from business profits made to write off the cost of capital assets over their expected useful lives.

Depreciation is not an allowable expense for tax purposes, but is capital allowances given an equivalent kind of tax deduction.

Director

Someone who is appointed to a position high up in a private or public company and "directs" how the business is run.

Directors' Fees

Fees paid by a company to its directors. May be paid in addition to salary and other benefits.

Disabled Persons Tax Credit

A form of social security disability benefit, payable to disabled people who are in employment and have a PAYE code.

The benefit is normally awarded for a period of twenty six weeks.

From April 2000 the claimant's employer is instructed to make payments with salary or wages on behalf of the Government .

The employer does not know on what basis the benefit entitlement or amount has been worked out.

The DPTC paid out (as far as the employer is concerned) is met out of the total tax and NIC which is deducted through the payroll and which the employer would normally hand over to the Inland Revenue.

For this reason the payment is called a tax credit.

However it is not a true tax credit in the hands of the recipient and does not require to be reported on your tax return.

Nor should it enter into any calculations you or the Inland Revenue may make of your outstanding tax liability or rebate due at the end of the tax year.

Disallowable Expenses

Expenses which, although charged in your business accounts, are not tax deductible.

The disallowable expenses must be added on to your trading profits when you calculate your taxable profits, and hence tax liability.

Discounted Securities

Certain redeemable securities that were issued at a price lower than the amount that will be paid when the securities are redeemed.

Does not include ordinary shares and indexlinked securities.

Discretionary Trusts

Trusts where the trustees can choose how to allocate the income and/or capital between the beneficiaries.

They may also have the power to accumulate income rather than paying it out to beneficiaries every year.

The trustees' powers are specified by the trust deed.

Dispensation

An agreement between an employer and the Inland Revenue that particular expenses paid to employees are genuine business expenses.

The expenses are not reported on the forms P11D or P9D and must not be included on the employees' own Tax Returns.

Disposals

Term used for the sale, gift, loss or exchange of an asset or part of an asset. (Back to top)

Distribution

In general terms, money which is paid by a company or unit trust manager to a shareholder or unit holder.

The distribution may be in the form of an asset rather than in cash.

The payment is made out of accumulated profits.

Dividend

Money which is paid by a company or unit trust manager to a shareholder or unit holder.

The payment is made out of accumulated profits.

Dividend Distributions

Open ended investment companies (OEICs) and unit trust managers make dividend distributions to shareholders from the dividends that they have received from their underlying investments.

Dividends Exdividend

If you sell a share just after the date you become entitled to a dividend, but before the date the dividend is paid out, the share is sold exdividend.

You are still entitled to receive the dividend.

Dividends Stock or Scrip Dividends

A dividend which you have elected to receive in shares instead of cash.

Dividends cumdividend: If you sell a share just before the date you become entitled to a dividend, the share is sold cumdividend.

The purchaser of the share(s) then receives the dividend.

Dividends and other Qualifying Distributions from UK Companies

In general terms, this is a dividend which is paid to a shareholder in the form of an asset (shares or property owned by the company for example) or cash.

The payment is taken out of accumulated profits and the tax credit deducted by the company is repayable (in certain situations).

DOM 1

An Inland Revenue questionnaire that helps determine your domicile (the country where you intend your permanent home to be).

Domicile

Your domicile is the country where you intend your permanent home to be.

This can be different from the country you currently live in.

The rules for determining where you are domiciled can be complicated and if you live in the UK but think you may be domiciled elsewhere you should consult a Tax Advisor.

Domicile of Choice

The country you have chosen as your permanent home but which is different from your domicile of origin or dependency.

Domicile of Dependency

Applies to children aged under 16.

Their domicile (permanent home) follows the domicile of parents until they reach 16, at which time they can change to a domicile of their choice.

Domicile of Origin

This will normally be the domicile (permanent home) of your father (sometimes your mother) when you were born.

Double Taxation Agreement

An agreement between governments of two countries to resolve taxation issues.

They are designed to stop income being taxed twice.

Double Taxation Relief

Taxation relief given where income would otherwise be taxed in two countries.

Draw Down

If you have contributed to a retirement annuity contract or personal pension plan, you can defer using the accumulated funds to purchase an annuity until you reach the age of 75.

Between retirement age (usually 50) and the age of 75 you can, within set limits, draw income from your pension scheme.

This is called "income draw down".

Dual Resident

A term used to describe you if you are resident in two or more countries at the same time.


AVVERTENZE D'UTILIZZO: Il presente glossario contiene una definizione dei termini più utilizzati in ambito fiscale e d'imposte nel Regno Unito.
La spiegazione di ciascuno dei termini indicati in questo glossario è di carattere meramente orientativo e priva di valore legale; si raccomanda, quindi, di tenere conto del contesto e dell'evento in cui essi vanno applicati, in quanto il significato loro attribuito potrebbe differire rispetto a quello qui rappresentato.

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