Corporation Tax Act 2009

943 Absolute interests

(1) The basic amount of estate income relating to a company’s absolute interest in the whole or part of the residue of an estate for an accounting period before the final accounting period is the lower of—

(a) the total of all sums paid in the accounting period in respect of that interest, and

(b) the amount of the company’s assumed income entitlement for the accounting period in respect of it.

(2) The basic amount for the final accounting period is equal to the amount of the company’s assumed income entitlement for that accounting period 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 the final accounting period is reduced—

(a) where the company 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 948 to 952 for the meaning of references to assumed income entitlement and residuary income of an estate.

(5) See sections 947 and 949(2) for the meaning of aggregate income of an estate and allowable estate deductions respectively.

(6) This section is subject to sections 953 to 956 (successive interests).