547. Reduction in residuary income where inheritance tax charged on accrued income.

If on the death of a person ('D'), income which accrued before D's death ('pre-death income') is taken into account both: (1) in determining the value of D's estate for the purposes of inheritance tax charged on D's death1; and (2) in calculating the residuary income2 of D's estate for a tax year3, then a reduction is made in the residuary income of D's estate for that tax year in ascertaining the extra liability4, if any, of a person with an absolute interest5 in the whole or part of the residue of D's estate or any other estate to