TSEM7690 | Deceased persons: interests in residue: practical and computational aspects - excess expenses

TSEM7678 explains how to compute residuary income. The expenses mentioned are deducted in the year in which they are paid.

Sometimes the allowable expenses in a particular year may exceed the income for that year. A statutory provision was introduced at, ITTOIA/S666 subsections (2) and (6) for non-corporate beneficiaries, and CTA 2009/S949 subsections (2) and (6) for corporate beneficiaries. This provides that excess expenses are carried forward for the purposes of computing residuary income for all tax purposes.

The excess expenses cannot, for any year, be set off against other income of the beneficiary.

TSEM7900 + provides guidance on personal representatives expenses.