Income Tax (Trading and Other Income) Act 2005 section 136

Beneficiaries' income from estates in administration: basic amounts

Section 136 provides transitional rules for calculating a beneficiary's income from an estate in administration where some of the relevant tax years fall before 2005-06, bridging the old ICTA rules and the current ITTOIA 2005 provisions.

• Where the calculation of a beneficiary's assumed income entitlement requires reference to tax years before 2005-06 ("old tax years"), the amounts deemed paid as income under the old ICTA rules stand in place of the "basic amounts" used under the current legislation.
• Where successive absolute interests span old tax years, the basic amounts for any previous interest include the amounts deemed paid to the previous holder under the old ICTA section 696.
• Where successive interests include limited interests held in old tax years, the basic amounts for those earlier interests include the amounts deemed paid to holders under the old ICTA section 695.
• For UK estates, the deemed amounts from old tax years are taken before any grossing up that would otherwise have applied under the old ICTA provisions.

---