Section 678 | Relief where UK income tax borne by foreign estate: limited and discretionary interests
From legislation.gov.uk
15 July 2026
(1)This section applies if—
(a)an estate is a foreign estate in relation to a tax year,
(b)United Kingdom income tax has been charged on a person for the tax year on estate income from the estate treated as arising under—
(i)section 654 (estate income: limited interests in residue), or
(ii)section 655 (estate income: discretionary interests in residue), and
(c)United Kingdom income tax has already been borne by part of the aggregate income of the estate for the tax year.
(2)If the person makes a claim under this section, the income tax charged on the person on that estate income is to be reduced by an amount equal to—
Formula
where—
T is the income tax charged on the person,
A is so much of the aggregate income of the estate as has already borne United Kingdom income tax for the tax year,
B is the aggregate income of the estate for the tax year, and
C is the amount of United Kingdom income tax already borne by the aggregate income of the estate for the tax year.
(3)The tax reduction under this section is given effect at Step 6 of the calculation in section 23 of ITA 2007.F1