Income Tax (Trading and Other Income) Act 2005

287 (1) Amend section 698 (special provisions as to certain interests in residue) as follows.

(2) In subsection (1B)(c)(ii) for “year of assessment” substitute “accounting period”.

(3) In subsection (2)(b) for “year” substitute “accounting period”.

(4) In subsection (3)—

(a) for “all tax” substitute “corporation tax”, and

(b) for “year of assessment” substitute “accounting period”.

(5) After subsection (3) insert—

“(4) Subsection (5) applies in any case where—

(a) successively during the administration period there are different persons with absolute interests in the residue of the estate of a deceased person, or in parts of such a residue, and

(b) some, but not all are companies liable to corporation tax in respect of income within this Part.

(5) References in this section—

(a) to sums deemed to be paid as income for an accounting period to a person who is not such a company,

(b) to the residuary income for any accounting period of such a person, or

(c) to amounts deemed to be paid to such a person as income,

are references to sums that would be so deemed, to the income that would be such residuary income or, as the case may be, to the amounts that would be so deemed if the assumptions in subsection (6) were made.

(6) The assumptions are—

(a) that each of the persons who is not a company liable to corporation tax in respect of income within this Part is such a company, and

(b) that in the case of each person who is not a company, the person’s accounting periods correspond with years of assessment.”