What do you mean by 40 tax threshold?

[Accounting Byte]

 
<p dir=”ltr” style=”line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;”><span style=”font-size: 11pt; font-family: Arial,sans-serif; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;”>The value that determines the limit of tax-free activity. In most income tax systems no tax is payable until income reaches a tax threshold. Income above the threshold is then subject to tax. Thresholds apply to many other taxes such as capital gains tax and inheritance tax. The </span><span style=”font-size: 11pt; font-family: Arial,sans-serif; color: #000000; background-color: transparent; font-weight: bold; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;”>40 tax threshold</span><span style=”font-size: 11pt; font-family: Arial,sans-serif; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;”> is the amount of income below which you do not pay any income tax. These thresholds are also determined by the age of the taxpayer and change by tax year.</span></p>

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