Section EH 52 — Income Tax Act 2007: Income when refund given on death, and election to allocate amount to later year or years

EH 52 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 does not make an election under section EH 51 ; and (b) the trustee chooses to allocate some or all of the amount that is in the person’s adverse event income equalisation account on the date of the person’s death to an accounting year or years after that date. Accounting year or years for purposes of subsection (1)(b) (2) For the purposes of subsection (1)(b), the accounting year or years 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 year or years includes the deposit or part of it. Amount allocated remains in account (3) An amount allocated by the trustee to a later accounting year remains in the person’s adverse event income equalisation account until it is refunded to the trustee in the accounting year to which it is allocated. 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 income 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 , adverse event income equalisation account , amount , Commissioner , corresponding income year , deposit , income , notice , person , return , trustee , year , Compare: 2004 No 35 s EH 53