Corporation Tax Act 2009 section 939

Limited interests in residue

Section 939 sets out the circumstances in which estate income is treated as arising in an accounting period from a company's limited interest in the residue of an estate.

• Estate income arises where a payment is made in respect of a limited interest during an accounting period and before the end of the administration period (Case A)
• Estate income also arises in the final accounting period where a sum remains payable in respect of the interest at the end of administration (Case B)
• Where the interest ceases before the final accounting period, income is recognised if sums are paid later or remain payable at the end of administration (Case C)
• This section does not apply to successive limited interests covered by section 957, but income arising under either section 939 or section 957 counts as estate income