Income Tax (Trading and Other Income) Act 2005 section 658

Special rules for foreign income

Section 658 sets out how the special rules for foreign income apply to estate income received by beneficiaries, depending on whether the estate is classified as a foreign estate or a UK estate.

• Estate income charged to tax is subject to the special rules for foreign income contained in Part 8 of the Act.
• If the estate is a foreign estate, the income is treated as arising from a source outside the United Kingdom and qualifies as "relevant foreign income".
• If the estate is a UK estate, the income is not treated as arising from an overseas source and the special foreign income rules do not apply.
• The distinction between a foreign estate and a UK estate therefore determines whether the beneficiary's income falls within the foreign income regime.