Corporation Tax Act 2009 section 950

Shares of residuary income of estate

Section 950 explains how to determine a company's share of the residuary income from an estate in administration where the company holds an absolute interest in the whole or part of the residue.

• A company with an absolute interest in the whole residue for a full tax year is entitled to the entire residuary income for that year.
• Where the interest covers only part of the residue or only part of the tax year, the company receives a proportionate share of the residuary income.
• If the company's tax year spans more than one accounting period, its share of the residuary income must be apportioned between those accounting periods.
• The company's share may be reduced under the provisions of section 951, which deals with reductions in the share of residuary income.