A higher rate of income tax is applied to individuals with taxable income exceeding certain thresholds, different from the basic rate of income tax. In 2016-17, it was levied at 40% on income over £32,000, with an additional rate of 45% for income beyond £150,000.
Exemptions from withholding for the taxpayer, spouse, and dependents, used in calculating the amount of income tax to be withheld from periodic wage payments.
A repayment claim is a request made by taxpayers to recover overpaid taxes for a fiscal year. Such claims are necessary when basic rate taxes are deducted at source from income without considering personal allowances.
A system that enables taxpayers to assess their own income tax and capital gains tax liabilities for the year. Since 1996-97, self-assessment has become a significant component of the UK tax return system, encapsulating details on taxable income, chargeable gains, and claims for personal allowances.
Tax relief is a reduction in the amount of tax that an individual or corporation owes to the government, typically through various statutory provisions. In the UK, tax relief can be applied to income tax, capital gains tax, and inheritance tax through different mechanisms such as allowances, exemptions, and credits.
