Part 10Miscellaneous income
Chapter 3Beneficiaries' income from estates in administration
Successive interests
956Payments in respect of limited interests followed by absolute interests
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.