Section 962 — Corporation Tax Act 2009: Income from which basic amounts are treated as paid

Income from which basic amounts are treated as paid 962 1 The part of the aggregate income of the estate from which a basic amount is treated as paid is determined by applying assumptions A and B in that order.

2 Assumption A is that if there are different persons with interests in the residue of the estate, payments in respect of their basic amounts are paid out of the different parts of the aggregate income of the estate in such proportions as are just and reasonable for their different interests.

3 Assumption B is that payments are made from those parts in descending order, starting with the income bearing income tax at the highest rate and ending with the income bearing income tax at the lowest rate (subject to subsection (3A) ) . 3A For the purposes of assumption B, where those parts include—

a income bearing income tax at 0% by virtue of section 963 (1A) , and b other income bearing income tax at 0%, payments are to be made from income within paragraph (a) after income within paragraph (b) .

4 If some, but not all, of the aggregate income of the estate is income within section 963 , assumption C is applied before assumptions A and B.

5 Assumption C is that the basic amount is paid from income that is not within section 963 before it is paid from income within that section.

6 Assumptions A and B then apply—

a first to determine the part of the income not within that section from which the basic amount is paid, and b then to determine the part of the income within that section from which the basic amount is paid.