Tax Allowances

Sums which are deducted from total income to arrive at taxable income.

Tax Credit

A reduction in the amount of taxes owed. For example, corporations are permitted a credit on U.S. taxes for taxes paid to foreign governments, and individuals could, for a number of years, claim a tax credit for a portion of expenditures for certain energy-saving home improvements. A tax credit is more valuable than a deduction of an equal amount because the credit results in a reduction in tax owed rather than a reduction in taxable income.

Tax Exempt Organisation

A nonprofit or not-for-profit, charitable organisation which, engages in charitable activities, so it does not have to pay taxes. An organisation must submit evidence of its charitable work and fulfil other requirements to receive tax-exempt status.

TESSA

Tax Exempt Special Savings Accounts (TESSAs) are five year savings accounts that do not incur tax charges on the interest paid. It has not been possible to open a new TESSA account since April 1999. However, TESSAs in existence before that date can continue up to the end of their 5 year term. Maturing TESSAs are allowed to be invested in an ISA (Within 6 months of maturity) without affecting the ISA allowance.

TESSA ISA

A TESSA ISA is intended specifically for the investment of the capital element of TESSAs maturing after 5 th April 1999, up to maximum of £9000. The capital element of a TESSA maturing after 5 th April 1999, up to a maximum of £9000, can alternatively be invested to a Cash Mini ISA, or to the cash element of a Maxi ISA, without affecting the available ISA allowance in that tax year.

Title

A legal right or document proving legal right.

Title Deed

These are the legal documents which prove the ownership of the property and set out details of anything affecting the property such as rights of way and boundaries.

Total Borrowing

The total amount you’ve actually borrowed on your account. Your Total Borrowing = Agreed/Total Facility – Additional Borrowing.

Total Return

The sum of dividend or interest income and any capital gain. Total return is generally considered a better measure of an investment’s return than dividends or interest alone.

Tracker

A professional investment fund that tries to emulate the fortunes of a share index such as FTSE 100 by investing only in the companies representing the index and in the proportions of the index that each company reflects.

Transfer Payment

Payment of a lump sum (Transfer Value) representing the value of an employee’s accumulated pension rights, from one Pension Scheme to another Pension Scheme, or to a Buy Out Policy.