Commentary

I4.546 Absolute interest in residue—residuary income

IHT, trusts and estates

I4.546 Absolute interest in residue—residuary income

I4.546 Absolute interest in residue—residuary income

Where a beneficiary has an absolute interest in residue (see I4.543), the basic amount of estate income attributable to him depends on the amount of the residuary income of the estate1.

The 'residuary income' of the estate for a tax year means the aggregate income (see I4.541) reduced by the following amounts (provided they are not allowable in computing aggregate income)2:

  1.  

    (a)     all interest payable in that year by the PRs, other than interest on unpaid inheritance tax3

  2.  

    (b)     all annual payments for that year which are properly payable out of residue

  3.  

    (c)     all expenses

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial