679Income from which basic amounts are treated as paidU.K.
(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 [F1in descending order, starting with the income bearing income tax at the highest rate and ending with the income bearing income tax at the lowest rate].
(4)If some, but not all, of the aggregate income of the estate is income [F2within section 680], 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 680 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.
Textual Amendments
F1Words in s. 679(3) substituted (6.4.2023 in relation to the tax year 2023-24 and subsequent tax years) by Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 5(a), 14(2)(a)
F2Words in s. 679(4) substituted (6.4.2023 in relation to the tax year 2023-24 and subsequent tax years) by Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 5(b), 14(2)(a)