(1)This section has effect for the purposes of—
section 946 (the applicable rate for grossing up basic amounts of estate income),
section 952 (applicable rate for determining assumed income entitlement (UK estates)), F1...
section 962 (income from which basic amounts are treated as paid) [F2, and
section 962A (income from which sums within section 951(1)(b) are treated as paid).]
(2)If the aggregate income of the estate includes a sum within subsection (3) [F3, (3A)] 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 of ITTOIA 2005 (dividends etc. from UK resident companies etc.), F4...
F4(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F5(3A)A sum that is part of the aggregate income of the estate because of falling within section 947(2)(c) (stock dividends) or (d) (release of loans to participator in close company: loans and advances to persons who die) is treated as bearing income tax at 0%.]
(4)A sum that is part of the aggregate income of the estate because of falling within section 947(2)(e) (gains from life insurance contracts etc.) is treated as bearing income tax at the basic rate.
(5)Income tax treated as borne under section 941(3) or 942(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.
Textual Amendments
F1Word in s. 963(1) omitted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 8(3)(a), 14(2)(b)
F2Words in s. 963(1) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 7(4)(a), 14(2)(b)
F3Word in s. 963(2) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 8(4)(a), 14(2)(b)
F4S. 963(3)(b) and word omitted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 8(4)(b), 14(2)(b)
F5S. 963(3A) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 8(4)(c), 14(2)(b)