A beneficiary is charged to income tax for a tax year, or corporation tax for an accounting period, on the basic amount of estate income applicable to the beneficiary's interest grossed up by reference to the applicable rate for the relevant tax year (see below)1. The basic amount is determined by the rules applicable to the nature of his interest in the residue of the estate (see I4.546–I4.550). The gross amount is deemed to have suffered income tax at the applicable rate2.
By concession (ESC A14) a beneficiary who, for a year of assessment, is not resident in the UK may claim to have his tax liability on the income from the estate adjusted to what it would be if the income had arisen to him directly.
The general rule is that the applicable rate is the rate
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Web page updated on 17 Mar 2025 16:28