956Payments in respect of limited interests followed by absolute interestsU.K.
(1)This section applies if—
(a)two or more interests in the whole or part of the residue of an estate are held successively during the administration period by different persons,
(b)each later interest arises or is created on the cessation of the previous interest otherwise than by death,
(c)at least one of the interests is an absolute interest, and
(d)at least one of the interests preceding that interest is a limited interest.
(2)A sum to which a company (“C”) with such an absolute interest is entitled in respect of any such limited interest which is paid while C has the absolute interest is treated as paid in respect of the absolute interest (and not the limited interest).
(3)Subsection (4) applies if—
(a)C's absolute interest ceases during the administration period, and
(b)a sum to which C is entitled in respect of any such limited interest—
(i)is paid after the absolute interest ceases but before the end of the administration period, or
(ii)remains payable at the end of it.
(4)This Chapter applies as respects any such sum as if the limited interest had continued to subsist while that absolute interest subsisted and had been held by C.
(5)Subsection (4) is subject to subsection (6).
(6)For the purposes only of section 951 (reduction in share of residuary income of estate), any such sum is treated as paid or payable in respect of the absolute interest.