Income Tax (Trading and Other Income) Act 2005

660 Basic amount of estate income: absolute interests E+W+S+N.I.

(1) The basic amount of estate income relating to a person's absolute interest in the whole or part of the residue of an estate for a tax year before the final tax year is the lower of—

(a) the total of all sums paid in the tax year in respect of that interest, and

(b) the amount of the person's assumed income entitlement for the tax year in respect of it.

(2) The basic amount for the final tax year is equal to the amount of the person's assumed income entitlement for that year in respect of that interest.

(3) But if the residuary income of the estate for the final tax year is nil because the allowable estate deductions exceed the aggregate income of the estate, the basic amount for that year is reduced—

(a) where the person has an absolute interest in the whole of the residue of the estate, by an amount equal to the excess, and

(b) in any other case, by an amount equal to such part of the excess as is just and reasonable.

(4) See sections 665 to 670 for the meaning of references to assumed income entitlement and residuary income of an estate.

(5) See sections 664 and 666(2) for the meaning of aggregate income of an estate and allowable estate deductions respectively.

(6) This section is subject to sections 671 to 673 (successive interests).