Finance (No. 2) Act 1997

21 Estates in administration: distributions to which s.233(1) applies.U.K.

(1)Section 699A of the Taxes Act 1988 (untaxed sums comprised in the income of the estate) shall be amended as follows.

(2)In subsection (1) (which defines “a relevant amount” by reference to an amount which is or would be paid out of sums to which paragraphs (a) and (b) apply) after paragraph (b) there shall be inserted—

or out of any sums included in the aggregate income of the estate of the deceased which fall within subsection (1A) below.

(3)After subsection (1) there shall be inserted—

(1A)A sum falls within this subsection if it is a sum in respect of a distribution to which section 233(1) applies.

(1B)Any reference in this Part to a sum to which subsection (1)(a) and (b) above applies includes a reference to a sum falling within subsection (1A) above which is included in the aggregate income of the estate of the deceased.

(4)In subsection (4) (rate at which sums are assumed to bear tax) after paragraph (b) there shall be inserted ; and

(c)in the case of sums falling within subsection (1A) above, at the lower rate.

(5)This section has effect in relation to amounts which a person is deemed by virtue of Part XVI of the Taxes Act 1988 (estates in the course of administration) to receive, or to have a right to receive, on or after 2nd July 1997.