Income Tax (Trading and Other Income) Act 2005

654 Estate income: limited interests in residue

(1) Income is treated as arising in a tax year from a person’s limited interest in the whole or part of the residue of an estate in cases A, B and C.

(2) Case A is where—

(a) the interest has not ceased before the beginning of the tax year, and

(b) a sum is paid in respect of the interest in that year and before the end of the administration period.

(3) Case B is where—

(a) the tax year is the final tax year,

(b) the interest has not ceased before the beginning of that year, and

(c) a sum remains payable in respect of the interest at the end of the administration period.

(4) Case C is where—

(a) the tax year is a year before the final tax year,

(b) the interest ceases in the tax year, and

(c) a sum is paid in respect of the interest in a later tax year but before the end of the administration period, or remains payable in respect of it at the end of that period.

(5) This section does not apply to limited interests to which section 674 (successive interests: holders of limited interests) applies.

(6) Income treated as arising as a result of this section or section 674 is estate income for the purposes of this Chapter.