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Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.


Term of the day

income tax

This is a tax on the earned and unearned income of individuals and trusts. Income includes earnings from employment, profits from a trade carried on by an individual (either alone or in partnership), income from pensions, and investment income such as interest, dividends and rents.

In the UK, the rates of income tax for 2016/17 are the basic rate (20 percent) on income up to £32,000, the higher rate (40 percent) on income between £32,001 and £150,000 and the additional rate (45 percent) on the...