Corporation Tax Act 2009

General

962 Income from which basic amounts are treated as paid

(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.

963 Income treated as bearing income tax

(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)), and

• section 962 (income from which basic amounts are treated as paid).

(2) If the aggregate income of the estate includes a sum within subsection (3) 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.), or

(b) a sum that is part of the aggregate income of the estate because of falling within—

(i) section 947(2)(c) (stock dividends), or

(ii) section 947(2)(d) (release of loan to participator in close company where debt due from personal representatives).

(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.

964 Transfers of assets etc treated as payments

(1) For the purposes of this Chapter—

(a) a transfer of assets, or

(b) the appropriation of assets by personal representatives to themselves,

is treated as the payment of an amount equal to the assets' value at the date of transfer or appropriation.

(2) The set off or release of a debt is treated for the purposes of this Chapter as the payment of an amount equal to it.

(3) If at the end of the administration period—

(a) there is an obligation to transfer assets to any person, or

(b) personal representatives are entitled to appropriate assets to themselves,

an amount equal to the assets' value at that time is treated as payable then for the purposes of this Chapter.

(4) If at the end of the administration period—

(a) there is an obligation to release or set off a debt owed by any person, or

(b) personal representatives are entitled to release or set off a debt in their own favour,

a sum equal to the debt is treated as payable then for the purposes of this Chapter.

965 Assessments, adjustments and claims after the administration period

(1) This subsection applies if after the administration period ends it is apparent that a company is liable for corporation tax on estate income for any accounting period for which it previously appeared not to be so liable or to be liable for tax on a lesser amount.

(2) If subsection (1) applies—

(a) the company may be assessed and taxed for the accounting period, and

(b) any relief or additional relief to which the company may be entitled for the accounting period is to be allowed if a claim is made.

(3) This subsection applies if after the administration period ends it is apparent that a company which previously appeared to be liable for corporation tax on estate income for any accounting period is not so liable or is liable for tax on a lesser amount.

(4) If subsection (3) applies—

(a) all necessary adjustments and repayments of corporation tax for the accounting period are to be made, and

(b) if the company has been allowed relief which exceeds the relief that could have been given by reference to the amount actually charged for the accounting period, the excess is to be treated as chargeable for that accounting period under the charge to corporation tax on income.

(5) An assessment or adjustment made for the purposes of this Chapter or a claim made as a result of this Chapter may be made after the end of the period otherwise allowed if it is made on or before the third anniversary of the 31 January following the accounting period in which the administration period ends.

966 Power to obtain information from personal representatives and beneficiaries

(1) An officer of Revenue and Customs may by notice require a person within subsection (2) to provide the officer with such particulars as the officer thinks necessary for the purposes of this Chapter.

(2) A person is within this subsection if—

(a) the person is or has been a personal representative, or

(b) the person has or has had an absolute or limited interest in the whole or part of the residue of the deceased person’s estate.

(3) The notice must specify the period within which the particulars must be provided.

(4) That period must be at least 28 days.

967 Statements relating to estate income

(1) If a company within subsection (2) requests it in writing, a personal representative of a deceased person must provide the company with a statement showing—

(a) the amount treated as estate income arising from the company’s interest in the whole or part of the deceased person’s estate for which the company is liable to corporation tax for an accounting period, and

(b) the amount of any tax at the applicable rate which any such amount is treated as having borne.

(2) A company is within this subsection if—

(a) it has or has had an absolute or limited interest in the whole or part of the residue of the estate, or

(b) estate income has arisen to it from a discretionary interest it has or has had in the whole or part of the residue of the estate.

(3) A statement under subsection (1) must be in writing.

(4) The duty to comply with a request under this section is enforceable by the company which made it.