3(1)The “notional basic rate” for a transitional tax year is calculated by adding together—U.K.
(a)the actual basic rate of income tax for that year, and
(b)the transitional supplement for that year.
(2)But if the rate calculated for a transitional tax year by adding those two things together is more than 22%, the notional basic rate for that year is 22%.
(3)The “transitional supplement” for each transitional tax year is 2%.
(4)Section 998 of ITA 2007 applies to the grossing up of an amount by reference to a notional basic rate as if the notional basic rate were an actual rate of tax.