What are relevant earnings?
Relevant UK earnings for a tax year include: a self-employed individual’s profits from the trading year ending in the tax year. For partners, their share of profits. employment income (including salary, bonuses, overtime and commissions)
What is included in net relevant earnings for pension contributions?
The maximum contribution which can be made to a pension fund in any one tax year is 100% of an individual’s ‘relevant earnings’ for that year. ‘Relevant earnings’ include employment income (including benefits), trading income, furnished holiday lettings and patent income in relation to inventions.
How is higher rate tax relief paid?
What is higher rate tax relief? Tax relief is the principle that all the income you pay into a pension scheme should be exempt from income tax. But because income tax is usually paid at source (via PAYE if you’re an employee), this money is repaid to you on every pension contribution you make.
What counts as earnings for pension purposes?
Profit related pay (including the part which is not taxable) Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP) provided it is paid by the employer and chargeable to tax under Section 7(2) ITEPA 2003. Permanent Health Insurance (PHI) payments paid by the employer whilst you are still in employment.
When does rental income need to be included in earnings?
rental income is generally not relevant earnings but some rental income may be included if it is in respect of UK or EEA* furnished holiday lettings business; For full information see PTM044100
How is rental income taxed in the UK?
The tax authorities, on the other hand, argue that rental income should be chargeable to tax as HP Income, perhaps the ease (and limitation) of deductions under HP being the driving force. This is the genesis of the tussle between taxpayers and the department on taxability of rental income from lease of immovable property.
How is income from rental property taxed in India?
Taxation of rent received. The Income Tax Act of India has a specific head of income, titled ‘Income from house property’, to tax the rent received by an owner of a property. So, any rent received with respect to a property that is let out, is taxable under this head.
What are the tax deductions available on rental income?
What are the tax deductions available on rental income? From the rental income, a property owner is allowed to deduct municipal taxes on the property, rent that is not realised, a 30% standard deduction on the annual value of the property, as well as interest on the money borrowed for the renovation of the property.