Part 5

Miscellaneous income
Chapter 6

Beneficiaries' income from estates in administration

Charge to tax on estate income

Meaning of “UK estate” and “foreign estate”
651
1
In this Chapter—
- “UK estate”, in relation to a tax year, means an estate which meets conditions A and B, or condition C, for that year, and
- “foreign estate”, in relation to a tax year, means an estate which is not a UK estate in relation to that year.
2
Condition A is that all the income of the estate either—
a
has borne United Kingdom income tax by deduction, or
b
is income in respect of which the personal representatives are directly assessable to United Kingdom income tax for the tax year.
3
Condition B is that none of the income of the estate is income for which the personal representatives are not liable to United Kingdom income tax for the tax year because they are not UK resident ....
4
For the purposes of conditions A and B sums within section 664(2)(c) or (d) or 680(4) (sums not liable to tax and sums treated as bearing tax) are ignored.
5
Condition C is that the aggregate income of the estate for the tax year consists only of sums within section 664(2)(c) or (d) or 680(4).
Words in s. 651(5) substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 20(b)
Words in s. 651(4) substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 20(a)
Words in s. 651(3) omitted (with effect in accordance with Sch. 46 para. 72 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 50