Corporation Tax Act 2009 section 952

Applicable rate for determining assumed income entitlement (UK estates)

Section 952 explains how to determine the applicable income tax rate used when calculating a company's assumed income entitlement from a UK estate in administration.

• The applicable rate depends on the income tax rate borne by the estate's aggregate income for the relevant tax year
• Where the estate's aggregate income all bears tax at a single rate, that rate is the applicable rate; where different parts bear different rates, the rate matching the company's share of residuary income applies
• If the company's share relates to income taxed at multiple rates, each rate applies to its corresponding portion of that income
• Where more than one person holds an absolute interest in the residue, the different parts of aggregate income bearing different tax rates must be apportioned on a just and reasonable basis to reflect their respective interests