Income Tax Act 2007 section 483

Sums paid by personal representatives to trustees

Section 483 deals with the tax treatment of sums representing income that personal representatives pay to the trustees of a settlement during or at the end of the administration of an estate.

• The section applies when personal representatives pay a sum representing their income to trustees of a settlement during or at the end of the estate administration period
• The sum must be of a type that would have been taxed at the dividend trust rate or the trust rate if the trust taxation rules had applied to the personal representatives
• The sum paid to the trustees is treated as income and is deemed to have already borne income tax at the applicable rate used for grossing up estate income
• The applicable rate for this purpose is the rate specified in section 663(1) of ITTOIA 2005, which is the rate used for grossing up basic amounts of estate income