Income Tax (Trading and Other Income) Act 2005 section 655

Estate income: discretionary interests in residue

Section 655 sets out when estate income is treated as arising in a tax year where a person holds a discretionary interest in the residue of an estate.

• A discretionary interest in the residue of an estate can give rise to taxable estate income
• Estate income is treated as arising only in a tax year in which a payment is actually made in the person's favour
• The discretionary interest may relate to the whole or just part of the residue of the estate
• Any income arising under this rule is classified as estate income for the purposes of the wider Chapter