Part 10Miscellaneous income
Chapter 3Beneficiaries' income from estates in administration
General
962AF1Income from which sums within section 951(1)(b) are treated as paid
1
The part of the aggregate income of the estate from which a sum within section 951(1)(b) is treated as paid is determined by applying assumptions A and B in that order.
2
Assumption A is that if there are different persons with an absolute interest in the residue of the estate, such apportionments of the aggregate income of the estate in respect of those interests are to be made as are just and reasonable for the different interests.
3
Assumption B is that sums are paid from the income to which a person’s share of the residuary estate relates in descending order, starting with the income bearing income tax at the highest rate and ending with the income bearing income tax at the lowest rate F3(subject to subsection (3A)).
F23A
For the purposes of assumption B, where that income includes—
a
income bearing income tax at 0% by virtue of section 963(1A), and
b
other income bearing income tax at 0%,
sums are to be paid from income within paragraph (a) after income within paragraph (b).
4
If some, but not all, of the aggregate income of the estate is income within section 963, assumption C is applied before assumptions A and B.
5
Assumption C is that the basic amount is paid from income that is not within section 963 before it is paid from income within that section.
6
Assumptions A and B then apply—
a
first to determine the part of the income not within that section from which the basic amount is paid, and
b
then to determine the part of the income within that section from which the basic amount is paid.