Part 10Miscellaneous income
Chapter 3Beneficiaries' income from estates in administration
Basic amount of estate income: general calculations rules
946Applicable rate for grossing up basic amounts of estate income
(1)
The applicable rate by reference to which a basic amount of estate income is grossed up for the purposes of sections 941 and 942 depends on the rate at which income tax is borne by the aggregate income of the estate for the relevant tax year (see subsection (5)).
(2)
If the aggregate income of the estate all bears income tax at the same rate, the applicable rate is that rate.
(3)
If—
(a)
different parts of the aggregate income of the estate bear income tax at different rates, and
(b)
the same rate applies to all the income from which section 962 treats the basic amount as having been paid,
the applicable rate is that rate.
(4)
If—
(a)
different parts of the aggregate income of the estate bear income tax at different rates, and
(b)
different rates apply to different parts of the income from which section 962 treats the basic amount as having been paid,
each of those rates is the applicable rate by reference to which the corresponding part of the basic amount is grossed up.
(5)
In this Chapter “the relevant tax year” in relation to an amount of estate income, means the tax year in which the amount of estate income would be treated as arising if—
(a)
the references in this Chapter to accounting periods were references to tax years, and
(b)
section 950(3) (apportionment between accounting periods) were ignored.