Section EH 22 — Income Tax Act 2007: Income when refund given on death, and election to allocate amount to later year or years

EH 22 Income when refund given on death, and election to allocate amount to later year or years When this section applies (1) This section applies when— (a) the trustee of the person’s estate does not make an election under section EH 21 ; and (b) the trustee chooses to allocate some or all of the amount that is in the person’s main income equalisation account on the date of the person’s death to an accounting year or years after that date. Accounting year or years referred to in subsection (1)(b) (2) The accounting year or years referred to in subsection (1)(b) must be within the earlier of— (a) the 3 years after the date of the person’s death; and (b) the 5 years after the end of the accounting year for which a deposit or a part of a deposit was made, if the amount that the trustee allocates to a later accounting year or years includes the deposit or part of it. Allocated amount remains in account (3) An amount allocated by the trustee to a later accounting year remains in the person’s main income equalisation account until— (a) it is refunded to the trustee in the accounting year to which it is allocated; or (b) it is not refunded because of the application of section EH 28 . Different year of income (4) An amount allocated by the trustee to a later accounting year is income, under section CB 27 (Income equalisation schemes), derived by the person in the corresponding accounting year. How election made (5) A trustee makes an election under this section by a notice that— (a) specifies— (i) each amount allocated to a later accounting year; and (ii) the accounting year to which each amount is allocated; and (b) is given to the Commissioner within 1 of the following times: (i) the time within which the trustee is required to file a return of the person’s income for the period to the date of the person’s death: (ii) a further time allowed by the Commissioner in a case or class of cases. Defined in this Act: accounting year , amount , Commissioner , corresponding income year , deposit , income , main income equalisation account , notice , person , return of income , trustee , year , Compare: 2004 No 35 s EH 22