Income Tax (Trading and Other Income) Act 2005 section 667

Shares of residuary income of estate

Section 667 sets out how to determine a beneficiary's share of the residuary income of an estate where the beneficiary holds an absolute interest in the whole or part of the residue.

• A beneficiary with an absolute interest in the whole residue for a full tax year is entitled to all of the residuary income for that year
• Where the interest covers only part of the tax year, or relates to only part of the residue, the beneficiary receives a proportionate share of the residuary income
• The proportionate share reflects either the fraction of the year the interest was held, or the fraction of the residue to which the interest relates, or both
• Any share calculated under this section may be reduced under section 668, which deals with specific reductions to residuary income shares