Section 998 | Meaning of “grossing up”
From legislation.gov.uk
16 September 2026
(1)In the Income Tax Acts references to grossing up by reference to a rate of tax are to calculating the amount (“the grossed up amount”) which after deduction of income tax at that rate would equal the amount to be grossed up (“the net amount”).
(2)The grossed up amount is the sum of the net amount and the tax deducted.
(3)The grossed up amount may also be expressed as—
Formula
where—
GA is the grossed up 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.