Part 5

Miscellaneous income
Chapter 6

Beneficiaries' income from estates in administration

Types of estate income

Estate income: limited interests in residue
654
1
Income is treated as arising in a tax year from a person's limited interest in the whole or part of the residue of an estate in cases A, B and C.
2
Case A is where—
a
the interest has not ceased before the beginning of the tax year, and
b
a sum is paid in respect of the interest in that year and before the end of the administration period.
3
Case B is where—
a
the tax year is the final tax year,
b
the interest has not ceased before the beginning of that year, and
c
a sum remains payable in respect of the interest at the end of the administration period.
4
Case C is where—
a
the tax year is a year before the final tax year,
b
the interest ceases in the tax year, and
c
a sum is paid in respect of the interest in a later tax year but before the end of the administration period, or remains payable in respect of it at the end of that period.
5
This section does not apply to limited interests to which section 674 (successive interests: holders of limited interests) applies.
6
Income treated as arising as a result of this section or section 674 is estate income for the purposes of this Chapter.