Part 10Miscellaneous income

Chapter 3Beneficiaries' income from estates in administration

Types of estate income

939Limited interests in residue

1

Income is treated as arising in an accounting period from a company'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 accounting period, and

b

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

3

Case B is where—

a

the accounting period is the final accounting period,

b

the interest has not ceased before the beginning of that period, 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 accounting period is a period before the final accounting period,

b

the interest ceases in the accounting period, and

c

a sum is paid in respect of the interest in a later accounting period but before the end of the administration period, or remains payable in respect of it at the end of the administration period.

5

This section does not apply to limited interests to which section 957 (successive interests: holders of limited interests) applies.

6

Income treated as arising as a result of this section or section 957 is estate income for the purposes of this Chapter.