Income Tax (Trading and Other Income) Act 2005 section 661

Basic amount of estate income: limited interests

Section 661 explains how to calculate the basic amount of estate income for a person who holds a limited interest in the residue of an estate during administration.

• The basic amount of estate income for a limited interest is found by adding together the relevant sums identified under section 654 for the tax year in question.
• The relevant sums are those falling within section 654(2)(b), (3)(c) and (4)(c), though in practice sums under (3)(c) and (4)(c) cannot both arise in the same tax year.
• This calculation does not apply where the limited interest is a successive interest covered by section 674; in that case, section 675 provides an alternative method.
• The section applies to a person's limited interest in the whole or part of the residue of an estate.