955Assumed income entitlement of holder of absolute interest following limited interestU.K.
(1)This section applies if—
(a)two or more interests in the whole or part of the residue of an estate are held successively during the administration period by different persons,
(b)each later interest arises or is created on the cessation of the previous interest otherwise than by death,
(c)at least one of the interests is an absolute interest, and
(d)at least one of the interests preceding that interest is a limited interest.
(2)Rules A and B apply to determine in relation to such an absolute interest—
(a)whether the company with the interest has an assumed income entitlement in respect of the interest, and
(b)if so, its amount.
(3)Rule A is that the company's share of the residuary income of the estate in respect of the absolute interest for any accounting period is treated as including any amount which would be included in it if—
(a)the interest had subsisted throughout the period when any such limited interest subsisted, and
(b)no such limited interest had ever subsisted.
(4)Rule B is that the basic amounts relating to the absolute interest are treated as including the basic amounts relating to any such limited interest.