Part 5Miscellaneous income
Chapter 6Beneficiaries' income from estates in administration
General
680Income treated as bearing income tax
(1)
This section has effect for the purposes of—
section 663 (the applicable rate for grossing up basic amounts of estate income),
section 670 (applicable rate for determining assumed income entitlement (UK estates)), F1...
section 679 (income from which basic amounts are treated as paid) F2, and
section 679A (income from which sums within section 668(1)(b) are treated as paid).
F3(1A)
If, in the case of a UK estate, the aggregate income of the estate for a tax year is equal to or less than the de minimis estates amount (within the meaning of section 24B of ITA 2007), the aggregate income of the estate for that tax year is treated as bearing income tax at 0%.
F4(2)
If—
(a)
subsection (1A) does not apply to treat the aggregate income of the estate for a tax year as bearing income tax at 0%, and
(b)
the aggregate income of the estate for that tax year includes a sum within subsection (2A) or (4),
the sum is treated as bearing income tax at the rate specified for it in that subsection.
F5(2A)
A sum that is part of the aggregate income of the estate because of falling within section 664(2)(c) (stock dividends) or (d) (release of loans to participator in close company: loans and advances to persons who die) is treated as bearing income tax at 0%.
F6(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)
A sum that is part of the aggregate income of the estate because of falling within section 664(2)(e) (gains from life insurance contracts etc.) is treated as bearing income tax at the F7basic rate.
(5)
Income tax treated as borne under section 656(3) or 657(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 F8or from aggregate income treated as bearing income tax at 0% by virtue of subsection (1A).