http://www.legislation.gov.uk/id/ukpga/2009/4

Part 10Miscellaneous income

Chapter 3Beneficiaries' income from estates in administration

Relief where foreign estates have borne UK income tax

961Relief in respect of tax relating to limited or discretionary interests

1

This section applies if—

a

United Kingdom corporation tax has been charged on a company for an accounting period on estate income from an estate treated as arising under—

i

section 939 (estate income: limited interests in residue), or

ii

section 940 (estate income: discretionary interests in residue),

b

the estate is a foreign estate in relation to the relevant tax year, and

c

United Kingdom income tax has already been borne by part of the aggregate income of the estate for the relevant tax year.

2

If the company makes a claim under this section, the corporation tax charged on the company on that estate income is to be reduced by an amount equal to—

T \times \frac{A - C}{B - C}

where—

T is the corporation tax charged on the company,

A is so much of the aggregate income of the estate as has already borne United Kingdom income tax for the relevant tax year,

B is the aggregate income of the estate for the relevant tax year, and

C is the amount of United Kingdom income tax already borne by the aggregate income of the estate for the relevant tax year.