Corporation Tax Act 2009 section 949

Residuary income of the estate

Section 949 explains how to calculate the residuary income of an estate for a tax year by deducting allowable estate deductions from the estate's aggregate income.

• Residuary income equals the estate's aggregate income for the year minus allowable estate deductions for that year
• Allowable deductions include interest paid by personal representatives, annual payments properly payable out of residue, management expenses, and any excess deductions carried forward from the previous year
• No amount may be deducted if it has already been taken into account in calculating aggregate income, and no amount may be deducted twice
• Management expenses are only deductible if they are properly chargeable to income, disregarding any specific direction in the will