Section 949 — Corporation Tax Act 2009: Residuary income of the estate

Residuary income of the estate 949 1 For the purposes of this Chapter the residuary income of an estate for a tax year is the aggregate income of the estate for that year, less the allowable estate deductions for that year.

2 The allowable estate deductions for a tax year are—

a all interest paid in that year by the personal representatives in that capacity (but see section 233(3) of IHTA 1984: exclusion of interest on unpaid inheritance tax),

b all annual payments for that year which are properly payable out of residue, c all payments made in that year in respect of expenses incurred by the personal representatives in that capacity in the management of the assets of the estate, and d any excess deductions from the previous tax year. This is subject to subsections (3) to (5).

3 No sum is to be treated as an allowable estate deduction if it is allowable in calculating the aggregate income of the estate.

4 No sum is to be counted twice as an allowable estate deduction.

5 Payments in respect of expenses are only allowable estate deductions if they are properly chargeable to income (ignoring any specific direction in a will).

6 In this section “ excess deductions from the previous tax year ” means so much of the allowable deductions for the previous tax year as exceeded the aggregate income of the estate for that year.