A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Welcome to our Tax Glossary. Here you will find clear and comprehensible definitions of most of the tax terms you will face when dealing with UK income tax. This Glossary will help you understand the tax language, however it will not offer direct solutions to your tax issues. If you need further advice on any of those tax terms - just ask a tax adviser and get a free consultation right now!

Letter: F

Financial Year: See Accounting Period

First Year Allowances: Usually, Capital Allowances (i.e. depreciation on assets used for business) are based on 20% "writing down allowance" of the value at the start of the year. Higher allowances (40% or 100% depending on the assets) are available for new assets in the first year. Also see Annual Investment Allowance.

Flat Rate Expenses: Flat amounts available as deductions from taxable income for tools, special clothing etc necessarily provided by an employee without reimbursement and which the employer does not make available. The allowance which can be claimed is an agreed amount depending on the industry the occupation falls within.

Foreign Earnings Deduction (FED): See SED

Foreign Income: Income arising outside UK. A person resident in the UK is generally chargeable to UK tax on worldwide income. There are exceptions depending on type of income, residence status and domicile status.

Form 64-8: Also known as "Authorising your agent". With this form of authority a taxpayer allows the tax office to exchange information with their agent, and to deal with them on any matters within the responsibility of HM Revenue & Customs.

Free Standing Additional Voluntary contributions (FSAVCs): Payments made by an employee to a private scheme separate to a company scheme.

Furnished Holiday Lettings: A letting is regarded as a furnished holiday letting where the property is furnished and the letting meets all three of the following qualifying tests:

Available for holiday letting to the public on a commercial basis for 140 days or more; and
let commercially for 70 days or more; and
not occupied for more than 31 days by the same person in any period of 7 months