Define: Unearned Income

UK Accounting Glossary

Definition: Unearned Income

Quick Summary of Unearned Income


What is the dictionary definition of Unearned Income?

Dictionary Definition

Unearned Income refers to income not derived from trades, vocations or professionals, or from the emoluments of office.

In the United Kingdom, it was formerly taxed more heavily than earned income through the imposition of an surcharge on investment-income.

Earned and unearned income are now taxed at essentially the same rate (with the exception of minor differences in the treatment of income from savings and company dividends).


Full Definition of Unearned Income


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Page URL
Modern Language Association (MLA):
Unearned Income. Payroll & Accounting Heaven Ltd. November 12, 2019
Chicago Manual of Style (CMS):
Unearned Income. Payroll & Accounting Heaven Ltd. (accessed: November 12, 2019).
American Psychological Association (APA):
Unearned Income. Retrieved November 12, 2019, from website:

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This glossary post was last updated: 5th May 2019.