Schedules

Schedule 2Estates in administration and trusts

Part 1Estates in administration

Chapter 1Income tax

3Income from stock dividends etc treated as bearing income tax at 0%

1

Chapter 6 of Part 5 of ITTOIA 2005 (beneficiaries' income from estates in administration) is amended as follows.

2

In section 670 (applicable rate for determining assumed income entitlement (UK estates)) omit subsection (4A).

3

In section 680 (income treated as bearing income tax)—

a

in subsection (2), after “within subsection” insert “(2A) or”;

b

after subsection (2) insert—

2A

A sum that is part of the aggregate income of the estate because of falling within section 664(2)(c) (stock dividends) or (d) (release of loans to participator in close company: loans and advances to persons who die) is treated as bearing income tax at 0%.