Income Tax (Trading and Other Income) Act 2005 section 662

Basic amount of estate income: discretionary interests

Section 662 explains how to determine the basic amount of estate income for a person who holds a discretionary interest in the residue of an estate.

• The section applies to discretionary interests in the whole or part of the residue of a deceased person's estate.
• The basic amount of estate income is calculated on a tax year basis.
• It equals the total of all payments made during the tax year in exercise of the discretion in favour of the person.
• Only amounts actually paid out in the tax year count towards the basic amount — not amounts that could have been paid but were not.