Something which reduces your taxable income (which is the aggregate of all your incomes, less deductions and reliefs after your personal allowances). A relief may also reduce your tax liability although your taxable income is not reduced. For example farmer's averaging may reduce your tax liability if you transfer income from one year to another, and your marginal tax rate is lower in that other year.
Personal Pensions, Group Personal Pensions (GPPs) and Stakeholder Pensions For these types of scheme, tax relief is the process by which the Inland Revenue encourages you to save by crediting the basic-rate income tax you have already paid on your contributions, to your individual pension arrangement. And, if you are a higher-rate taxpayer, you can reclaim the difference between the basic and higher rate of tax through your tax return. Occupational Pensions For occupational pensions schemes, tax relief is the process by which the Inland Revenue encourages you to save by having your contributions taken out of your pay before your tax is deducted. None
A saving of tax arising from the right to deduct particular types of payments or losses from taxable income or gains. This includes payments for specific purposes that are statutorily allowable (such as personal pension contributions), as well as the general right to deduct losses from gains for capital gains tax purposes, or business losses from other income for income tax purposes.
Mortgage Interest Relief at Source (MIRAS). This is tax relief on your mortgage interest payments. At the moment this is 15% on your first £30,000 of the loan (based on current tax law). This helps to reduce the cost of your monthly repayments.
Also known as Mortgage Interest Relief at Source. Until 6.4.2000 all mortgages granted for the purpose of purchasing a main residence were normally eligible for mortgage interest tax relief at source (MIRAS), for the first £30,000 of the loan. This benefit was withdrawn completely from 6.4.2000.
Amounts which you can deduct from your annual income to reduce the amount on which you have to pay tax. For instance, if your income before deduction of reliefs is £20,000,and you made pension contributions in the year of £1,000,you could deduct £1,000 from £20,000 to produce a total income for tax purposes of £19,000. That is because pension contributions are payments on which the HM Revenue & Customs allows you to get relief.