Corporation Tax Act 2009 section 959

Apportionments

Section 959 requires just and reasonable apportionments to be made when successive interests in an estate in administration do not cover exactly the same portion of the residuary estate.

• Where successive interests in a residuary estate do not wholly correspond — for example, one covers a different part of the estate than the other — just and reasonable apportionments must be made
• The rule also applies where one interest covers the whole residuary estate but the other covers only part of it
• The apportionments apply across all the successive interest provisions, including successive absolute interests, absolute interests following limited interests, and successive limited interests
• The purpose is to ensure that income entitlements and tax calculations are fairly split when the scope of successive interests does not match up exactly