Commentary

I4.547 Absolute interest in residue—basic amount of estate income

IHT, trusts and estates

I4.547 Absolute interest in residue—basic amount of estate income

I4.547 Absolute interest in residue—basic amount of estate income

Estate income is treated as arising in a tax year, or accounting period, to a beneficiary with an absolute interest if the beneficiary has an assumed income entitlement (see below) for that year or period and either:

  1.  

    (a)     a payment is made in respect of that interest in that year or period and before the end of the administration period, or

  2.  

    (b)     the year is the final tax year, or the period is the final accounting period (see I4.532)1

The 'basic amount' of estate income relating to a beneficiary's absolute interest in residue for a tax year or accounting period (other than the final tax year or accounting period) is the total of the payments to the beneficiary in that year or period in respect of that interest (whether income or capital), but cannot exceed the amount of the beneficiary's assumed income entitlement for that year or period2.

As regards the basic amount for the final tax year or

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