962Income from which basic amounts are treated as paidU.K.
(1)The part of the aggregate income of the estate from which a basic amount is treated as paid is determined by applying assumptions A and B in that order.
(2)Assumption A is that if there are different persons with interests in the residue of the estate, payments in respect of their basic amounts are paid out of the different parts of the aggregate income of the estate in such proportions as are just and reasonable for their different interests.
(3)Assumption B is that payments are made from those parts in the following order—
(a)income bearing income tax at the basic rate, and
(b)income bearing income tax at the dividend ordinary rate.
(4)If some, but not all, of the aggregate income of the estate is income treated under section 963 as bearing income tax, assumption C is applied before assumptions A and B.
(5)Assumption C is that the basic amount is paid from income that is not within section 963 before it is paid from income within that section.
(6)Assumptions A and B then apply—
(a)first to determine the part of the income not within that section from which the basic amount is paid, and
(b)then to determine the part of the income within that section from which the basic amount is paid.