Income Tax

A compulsory tax on employment (salaries, wages, commissions) and investment (interest and dividends) income. It will be levied on both individuals and businesses. In most countries income tax is progressive on successive slices of income, so that the more you earn the higher the incremental rates of tax you pay. In the UK, everyone is allowed to make a certain amount of income, known as the personal allowance, before any tax is payable.