Part III Individuals, partnerships, trusts and collective investment schemes etc

Chapter I Miscellaneous provisions

64 Expenses in administration of estates and trusts.

(1)

In the case of a gain accruing to a person on the disposal of, or of a right or interest in or over, F1an asset held by another person as trustee, or as a personal representative of a deceased person, to which he became absolutely entitled as legatee or as against the trustee—

(a)

any expenditure within section 38(2) incurred by him in relation to the transfer of the asset to him by the F2personal representative or trustee, and

(b)

any such expenditure incurred in relation to the transfer of the asset by the F3personal representative or trustee,

shall be allowable as a deduction in the computation of the gain accruing to that person on the disposal.

(2)

In this Act, unless the context otherwise requires, “legatee” includes any person taking under a testamentary disposition or on an intestacy or partial intestacy, whether he takes beneficially or as trustee, and a person taking under a donatio mortis causa shall be treated (except for the purposes of section 62) as a legatee and his acquisition as made at the time of the donor’s death.

(3)

For the purposes of the definition of “legatee” above, and of any reference in this Act to a person acquiring an asset “as legatee”, property taken under a testamentary disposition or on an intestacy or partial intestacy includes any asset appropriated by the personal representatives in or towards satisfaction of a pecuniary legacy or any other interest or share in the property devolving under the disposition or intestacy.