544. Calculating basic income: discretionary interest.

The basic amount of estate income relating to a person's or company's discretionary interest1 in the whole or part of the residue of an estate for a tax year or accounting period2 is the total of the payments3 made in the tax year or accounting period in exercise of the discretion in favour of the person or company4.

Income is treated as estate income if it arises in a tax year or accounting period from a person's or company's discretionary interest in the whole or part of the residue of an estate if a payment is made in the tax