Section 64 | Expenses in administration of estates and trusts.

(1)In the case of a gain accruing to a person on the disposal of, or of a right or interest in or over, an asset held by another person as trustee, or as a personal representative of a deceased person, to which he became absolutely entitled as legatee or as against the trustee—^F1

(a)any expenditure within section 38(2) incurred by him in relation to the transfer of the asset to him by the personal representative or trustee, and^F2

(b)any such expenditure incurred in relation to the transfer of the asset by the personal representative or trustee,^F3

shall be allowable as a deduction in the computation of the gain accruing to that person on the disposal.

(2)In this Act, unless the context otherwise requires, “legatee” includes any person taking under a testamentary disposition or on an intestacy or partial intestacy, whether he takes beneficially or as trustee, and a person taking under a donatio mortis causa shall be treated (except for the purposes of section 62) as a legatee and his acquisition as made at the time of the donor’s death.

(3)For the purposes of the definition of “legatee” above, and of any reference in this Act to a person acquiring an asset “as legatee”, property taken under a testamentary disposition or on an intestacy or partial intestacy includes any asset appropriated by the personal representatives in or towards satisfaction of a pecuniary legacy or any other interest or share in the property devolving under the disposition or intestacy.