The amount of interest applicable to a particular loan or deposit before tax is deducted. Interest rates may be quoted gross or net. The gross interest less the tax deducted at the basic rate of income tax gives the net interest. Any tax suffered is usually, but not always, available as a credit against tax liabilities. Since 1991 low wage-earners and non-taxpayers have been able to apply to have interest on bank and building-society accounts paid gross.
Subjects: Financial Institutions and Services.