Income Tax (Trading and Other Income) Act 2005

680 Income treated as bearing income tax

(1) This section has effect for the purposes of—

• section 663 (the applicable rate for grossing up basic amounts of estate income),

• section 670 (applicable rate for determining assumed income entitlement (UK estates)), and

• section 679 (income from which basic amounts are treated as paid).

(2) If the aggregate income of the estate includes a sum within subsection (3) or (4), the sum is treated as bearing income tax at the rate specified for it in that subsection.

(3) The following sums are treated as bearing income tax at the dividend ordinary rate—

(a) a sum charged under Chapter 3 of Part 4 (dividends etc. from UK resident companies etc.), or

(b) a sum that is part of the aggregate income of the estate because of falling within—

(i) section 664(2)(c) (stock dividends), or

(ii) section 664(2)(d) (release of loan to participator in close company where debt due from personal representatives).

(4) A sum that is part of the aggregate income of the estate because of falling within section 664(2)(e) (gains from life insurance contracts etc.) is treated as bearing income tax at the lower rate.

(5) Income tax treated as borne under section 656(3) or 657(4) (gross amount of estate income treated as bearing tax at the applicable rate) is not repayable so far as the basic amount of the estate income in question is paid from sums within this section.