Schedules
Schedule 2Estates in administration and trusts
Part 1Estates in administration
Chapter 1Income tax
4Income treated as dividend income and savings income
1
Chapter 6 of Part 5 of ITTOIA 2005 (beneficiaries’ income from estates in administration) is amended as follows.
2
For section 680A (income treated as dividend income) substitute—
680AIncome treated as dividend income
1
This section applies to estate income that—
a
by virtue of section 663 (applicable rate for grossing up basic amounts of estate income) is treated as bearing income tax at the ordinary dividend rate, or
b
by virtue of that section and section 680(2A) (income treated as bearing income tax: dividends and loans to a participator in close company) is treated as bearing income tax at 0%.
2
The income is treated as being dividend income.
3
After that section insert—
680BIncome treated as savings income
1
This section applies to estate income relating to a person’s interest in the residue of an estate so far as that interest relates to income that—
a
falls within section 664(2)(a) (income of personal representatives charged to UK income tax), and
b
is savings income (see section 18 of ITA 2007).
2
The income is treated as being savings income.