SCHEDULES

SCHEDULE 45Statutory residence test

PART 3Split year treatment

Special charging rules for savings and investment income

87

1

Section 528A (reduction in amount charged on basis of non-UK residence of deceased person), as inserted by paragraph 3 of Schedule 8 to this Act, is amended as follows.

2

In subsection (1)(b), for the words from “on which” to the end substitute “ that were foreign days ”.

3

In subsection (2)—

a

in paragraph (b), for the words from “on which” to the end substitute “ that were foreign days, and ”, and

b

for paragraph (c), substitute—

c

the deceased died—

i

in a tax year for which the deceased was UK resident but not one that was a split year as respects the deceased, or

ii

in the UK part of a tax year that was a split year as respects the deceased.

4

After that subsection insert—

2A

Foreign days” are—

a

days falling within any tax year for which the deceased was not UK resident, and

b

days falling within the overseas part of any tax year that was a split year as respects the deceased.

5

In subsection (4), in the definition of “A”, for the words from “are days falling” to the end substitute “ were foreign days, and ”.

6

In subsection (8), for “subsection (1)(b) or (2)(b)” substitute “ subsection (2A)(a) and (b) ”.