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Legislation
Corporation Tax Act 2009

Crossheading Further provisions for calculating estate income relating to absolute interests

  • Section 948 Assumed income entitlement
  • Section 949 Residuary income of the estate
  • Section 950 Shares of residuary income of estate
  • Section 951 Reduction in share of residuary income of estate
  • Section 952 Applicable rate for determining assumed income entitlement (UK estates)
  1. Further provisions for calculating estate income relating to absolute interests
  2. Assumed income entitlement

Section 948 | Assumed income entitlement

From legislation.gov.uk

(1)Whether a company has an assumed income entitlement for an accounting period in respect of an absolute interest in the whole or part of the residue of an estate depends on the results of the following steps.Step 1Find the amount of the company's share of the residuary income of the estate that is attributable to that interest for that accounting period and each previous accounting period during which the company had that interest (see sections 949 to 951).Step 2If the estate is a UK estate in relation to any tax year by reference to which the amount of that share for any accounting period is determined under section 950, deduct from that amount income tax on that amount at the applicable rate for that year (see section 952).Step 3Add together the amounts found under step 1 after making any deductions necessary under step 2.Step 4Add together the basic amounts relating to the company's absolute interest in respect of which the company was liable for corporation tax for all previous accounting periods (or would have been so liable if the company had been a company liable for corporation tax for those accounting periods).

(2)For the purposes of this Chapter the company has an assumed income entitlement for the accounting period if the amount resulting from step 3 exceeds the amount resulting from step 4.

(3)The assumed income entitlement is equal to the excess.

(4)This section is subject to—

section 954 (successive absolute interests), and

section 955 (successive interests: assumed income entitlement of holder of absolute interest following limited interest).

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