Taxable equivalent income

Adjusting method that allows tax-free income or yield to be compared to gross taxable income before any taxes are deducted. This is done in order to determine how much taxable income/yield is required to equal the income or yield generated by a tax-free investment.

Also known as Taxable equivalent yield.

See also

• Balancing allowances
• Balancing charges
• Capital allowances
• Deferred tax
• Her Majesty’s Revenue & Customs
• Inland Revenue
• Notional allowances
• Taxable person