877Meaning of grossing upU.K.
This section has no associated Explanatory Notes
(1)In this Act references to grossing up by reference to a rate of tax are to calculating the amount (“the gross amount”) which after deduction of income tax at that rate would equal the amount to be grossed up (“the net amount”).
(2)The gross amount is the sum of the net amount and the tax deducted.
(3)The gross amount may also be expressed as—
where—
GA is the gross amount,
NA is the net amount, and
R is the percentage rate of tax by reference to which the net amount is to be grossed up.