Corporation Tax Act 2009 section 944

Limited interests

Section 944 explains how to calculate the basic amount of estate income for a company that holds a limited interest in the residue of an estate in administration.

• The basic amount of estate income for a limited interest is calculated by totalling the specific sums identified under the rules for limited interests in residue for the relevant accounting period.
• These sums are drawn from the amounts calculated when determining the share of residuary income for the estate for each accounting period.
• Where the limited interest is a successive interest (meaning it follows on from a previous limited interest held by someone else), a different calculation method applies instead.
• The distinction between ordinary limited interests and successive limited interests is important, as each has its own dedicated method for arriving at the basic amount of estate income.