Gross rate


 

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Gross rate

The interest rate earned on money placed on deposit with banks and financial institutions before deduction of tax.The interest rate charged to lenders by banks, mortgage providers and other lenders before any tax relief is taken into account.



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Gross margin

Gross margin

The difference between the selling price of an item and the purchase or manufacturing cost, expressed as a percentage of the selling price.For example, if it costs a company £6 to manufacture an item and the selling price is £10, the gross margin is:(£10 - £6) / £10 x 100 = 40%When looking at a company's Report and Accounts, the gross margin of the business as a whole is its turnover less the cost of sales, divided by the turnover, multiplied by 100.For example: (£2,000,000 - £1,200,000) / £2,000,000 x 100 = 40%


Grossing up

Grossing up

UK shareholders receive dividends with a tax credit of 10%. This means that a notional 10% tax has already been paid by the company paying the dividend and the amount you receive as a shareholder is 'net' of that tax payment.But in order to calculate your individual tax liability on the income, which may be higher than 10%, you have to 'gross up' the dividend - that is add back the tax deducted - and work out your tax liability from the gross figure.Example:You hold 1,000 shares in Bigyield plc which announces that it is paying a dividend of 9p per share. You actually receive £90 as a net dividend, but the company has also notionally but not actually paid £10 of the gross amount as tax on your behalf. So, although you only received £90, the tax position is: Actually received : £90.00 Tax credit: £10.00 Grossed up income: £100.00If you are a higher rate taxpayer, the amount you have to pay in total on the dividend is 32.5% which, on £100, is £32.50. Since you have a tax credit of £10, the additional amount payable is £22.50.Note that £22.50 is exactly a quarter of £90. A quick way for a higher rate taxpayer to calculate the additional tax payable on a UK dividend is to multiply the net amount received (£90) by 25%.


Gross interest

Gross interest

Interest earned before taxes are deducted.


Gross sales

Gross sales

Total sales calculated by summing all sales at invoice values, neglecting any adjustments such as customer discounts or returns.


Adjusted gross income

Adjusted gross income

In the US, a person's income on which federal income tax is calculated. This is gross income less adjustments such as Individual Retirement Account, Simplified Employee Pension Plan, Keogh Plan and alimony payments but before itemised deductions such as state and local income taxes, interest expenses and medical expenses.


Further Suggestions

Gross parity
Gross Income
Gross profit margin
gross income
gross
Gross spread
Gross lease
Gross Income Multiplier
gross national product
Adjusted gross income (AGI)
Gross income
Gross Lease
Gross per broker
Adjusted Gross Income
gross profit
gross interest
Gross national product
gross domestic product
Gross Weight
gross yield
Gross domestic product (GDP)
Gross domestic product
Gross output
Gross profit
gross redemption yield


 
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