What is included in the aggregate income of a deceased person's estate under ITTOIA 2005 section 664?

The aggregate income includes all UK income charged to income tax, foreign income that would have been taxed if UK-sourced, and deemed income items such as stock dividends under section 410(4), released loans to participators in close companies under section 419(2), and life insurance gains under section 466. Allowable deductions are subtracted from each category.

What income is excluded from the aggregate income of the estate under section 664?

Two categories are excluded: income arising from property subject to a specific disposition, such as a gift of identified property under a will including personal chattels distributed on intestacy, and income from property that devolves on personal representatives otherwise than as assets available for paying the deceased's debts.

How is foreign income treated in calculating the aggregate income of the estate?

Foreign income is included at the full amount that would have been charged to UK income tax had the personal representatives been UK resident and the income been UK-sourced. The deductions that would have been allowable under those hypothetical circumstances are then subtracted to arrive at the net foreign income figure.

What is a specific disposition for the purposes of section 664 of ITTOIA 2005?

A specific disposition means a gift of specific, identified property under a will. It includes personal chattels distributed under intestacy rules in section 46 of the Administration of Estates Act 1925 and equivalent foreign law provisions. However, it does not include real property forming part of a residuary gift described in general or specific terms.

Income Tax (Trading and Other Income) Act 2005 section 664

The aggregate income of the estate

Section 664 defines how the total taxable income of a deceased person's estate is calculated for a given tax year, including what is counted in and what is excluded.

The aggregate income includes UK-taxed income, foreign income that would have been taxed if it were UK-sourced, and certain deemed income items such as stock dividends, released loans to participators in close companies, and life insurance gains
Allowable deductions must be taken into account when calculating income — for foreign income, the deductions that would have applied had it been subject to UK tax are used
Income arising under a specific disposition (a gift of identified property under a will) and income from property that passes to personal representatives other than as assets for paying the deceased's debts are both excluded from the aggregate income
A specific disposition means a gift of specific property under a will, including personal chattels distributed on intestacy, but does not include real property forming part of a residuary gift described in general or specific terms

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.

Become a member