Explanatory Notes

Income Tax (Trading and Other Income) Act 2005

2005 CHAPTER 5

24 March 2005

Commentary on Sections

Part 5: Miscellaneous income

Chapter 6: Beneficiaries’ income from estates in administration
Section 655: Estate income: discretionary interests in residue

2508.This section deals with estate income relating to discretionary interests in residue. It is based on section 698 of ICTA.

2509.The section sets out the basis on which estate income is treated as arising in a tax year for discretionary interests in residue. Estate income is treated as arising if a payment is made in the tax year in exercise of the discretion in favour of the person with the discretionary interest.