Corporation Tax Act 2009 section 935

Absolute, limited and discretionary interests

Section 935 defines the three types of interest a company can have in the residue of a deceased person's estate: absolute, limited and discretionary.

• An absolute interest exists where the capital of the residue is, or would be, properly payable to the company
• A limited interest exists where the company has no absolute interest but would be entitled to the income from the residue if it had been ascertained
• A discretionary interest exists where a discretion may be exercised in the company's favour, entitling it to income from the residue during the administration period
• Personal representatives of one deceased person can be treated as holding an absolute or limited interest in the estate of another deceased person, provided they hold that right in their capacity as personal representatives