|
| |
|
(4) | If an item of property is sold together with other property, then, for the |
| |
purposes of the charges under sections 908 and 912— |
| |
(a) | the net proceeds of the sale of that item are treated as being so much of |
| |
the net proceeds of the sale of all the property as, on a just and |
| |
reasonable apportionment, is attributable to that item, and |
| 5 |
(b) | the expenditure incurred on the provision or purchase of that item is |
| |
treated as being so much of the consideration given for all the property |
| |
as, on a just and reasonable apportionment, is attributable to that item. |
| |
930 | Questions about apportionments affecting two or more persons |
| |
(1) | Any question about the way in which a sum is to be apportioned under section |
| 10 |
929 must be determined in accordance with section 563(2) to (6) of CAA 2001 |
| |
(procedure for determining certain questions affecting two or more persons) if |
| |
it materially affects two or more taxpayers. |
| |
(2) | For the purposes of subsection (1) a question materially affects two or more |
| |
taxpayers if at the time when the question falls to be determined it appears that |
| 15 |
the determination is material to the liability to tax (for whatever period) of two |
| |
| |
931 | Meaning of “capital sums” etc |
| |
Section 4 of CAA 2001 (meaning of “capital sums” etc) applies in relation to this |
| |
Part as it applies in relation to that Act. |
| 20 |
| |
| |
| |
| |
| 25 |
(1) | This Part applies the charge to corporation tax on income to— |
| |
(a) | dividends of a non-UK resident company (see Chapter 2), |
| |
(b) | beneficiaries’ income from estates in administration (see Chapter 3), |
| |
(c) | income from the holding of an office (see Chapter 4), |
| |
(d) | income treated as received from unauthorised unit trusts (see Chapter |
| 30 |
| |
(e) | income treated as arising from the sale or other realisation of dividend |
| |
coupons in respect of foreign holdings (see Chapter 6), |
| |
(f) | annual payments not otherwise charged to corporation tax (see |
| |
| 35 |
(g) | other income not otherwise charged to corporation tax (see Chapter 8). |
| |
(2) | Chapter 9 contains rules that give priority to provisions outside this Part in |
| |
relation to matters that fall within Chapter 2, 5 or 6. |
| |
(3) | This Part needs to be read with Part 19 (general exemptions). |
| |
|
| |
|
| |
|
| |
Dividends of non-UK resident companies |
| |
933 | Charge to tax on dividends of non-UK resident companies |
| |
(1) | The charge to corporation tax on income applies to dividends of a non-UK |
| |
| 5 |
(2) | In subsection (1) “dividends” does not include dividends of a capital nature. |
| |
| |
Beneficiaries’ income from estates in administration |
| |
| |
934 | Charge to tax on estate income |
| 10 |
(1) | The charge to corporation tax on income applies to estate income. |
| |
| |
“estate” means the estate of a deceased person (whether a UK estate or a |
| |
| |
“estate income” means the income treated under this Chapter as arising |
| 15 |
from an absolute, limited or discretionary interest in the whole or part |
| |
of the residue of an estate. |
| |
(3) | If different parts of an estate are subject to different residuary dispositions, |
| |
those parts are treated for the purposes of this Chapter as if they were separate |
| |
| 20 |
935 | Absolute, limited and discretionary interests |
| |
(1) | A person has an absolute interest in the whole or part of the residue of an estate |
| |
for the purposes of this Chapter if— |
| |
(a) | the capital of the residue or that part is properly payable to the person, |
| |
| 25 |
(b) | it would be so payable if the residue had been ascertained. |
| |
(2) | A person has a limited interest in the whole or part of the residue of an estate |
| |
during any period for the purposes of this Chapter if— |
| |
(a) | the person does not have an absolute interest in it, and |
| |
(b) | the income from it would be properly payable to the person if the |
| 30 |
residue had been ascertained at the beginning of that period. |
| |
(3) | A person has a discretionary interest in the whole or part of the residue of an |
| |
estate for the purposes of this Chapter if— |
| |
(a) | a discretion may be exercised in the person’s favour, and |
| |
(b) | on its exercise in the person’s favour any of the income of the residue |
| 35 |
during the whole or part of the administration period (see section 938) |
| |
would be properly payable to the person if the residue had been |
| |
ascertained at the beginning of that period. |
| |
|
| |
|
| |
|
(4) | For the purposes of this section, an amount is only treated as properly payable |
| |
| |
(a) | it is properly payable to A, or to another person in A’s right, for A’s |
| |
| |
(b) | A is a personal representative and subsection (5) applies. |
| 5 |
(5) | The personal representatives of a deceased person (“B”) are to be treated as |
| |
having an absolute or limited interest in the whole or part of the residue of the |
| |
estate of another deceased person (“C”) if— |
| |
(a) | they have a right in their capacity as B’s personal representatives, and |
| |
(b) | were the right vested in them for their own benefit, they would have |
| 10 |
that interest in C’s estate. |
| |
(6) | For the purposes of subsection (4), it does not matter whether the amount is |
| |
payable directly by the personal representatives or through a trustee or other |
| |
| |
936 | Meaning of “UK estate” and “foreign estate” |
| 15 |
| |
“UK estate”, in relation to a tax year, means an estate which meets |
| |
conditions A and B, or condition C, for that year, and |
| |
“foreign estate”, in relation to a tax year, means an estate which is not a |
| |
UK estate in relation to that year. |
| 20 |
(2) | Condition A is that all the income of the estate either— |
| |
(a) | has borne United Kingdom income tax by deduction, or |
| |
(b) | is income in respect of which the personal representatives are directly |
| |
assessable to United Kingdom income tax for the tax year. |
| |
(3) | Condition B is that none of the income of the estate is income for which the |
| 25 |
personal representatives are not liable to United Kingdom income tax for the |
| |
tax year because they are not UK resident or not ordinarily UK resident. |
| |
(4) | For the purposes of conditions A and B, sums within section 963(3) or (4) (sums |
| |
treated as bearing income tax) are ignored. |
| |
(5) | Condition C is that the aggregate income of the estate for the tax year consists |
| 30 |
only of sums within section 963(3) or (4). |
| |
| |
937 | Absolute interests in residue |
| |
(1) | Income is treated as arising in an accounting period from a company’s absolute |
| |
interest in the whole or part of the residue of an estate if— |
| 35 |
(a) | the company has an assumed income entitlement for the accounting |
| |
period in respect of the interest (see sections 948 to 952), and |
| |
(b) | condition A or B is met. |
| |
(2) | Condition A is that a payment is made in respect of the interest in the |
| |
accounting period and before the end of the administration period (see section |
| 40 |
| |
|
| |
|
| |
|
(3) | Condition B is that the accounting period is the final accounting period (see |
| |
| |
(4) | Income treated as arising as a result of this section is estate income for the |
| |
purposes of this Chapter. |
| |
938 | Meaning of “the administration period”, “the final accounting period” and |
| 5 |
| |
(1) | In this Chapter “the administration period”, in relation to the estate of a |
| |
deceased person, means the period beginning with the deceased’s death and |
| |
ending with the completion of the administration of the estate. |
| |
(2) | In the application of subsection (1) to Scotland, the reference to the completion |
| 10 |
of the administration is to be taken as a reference to the date at which, after |
| |
discharge of, or provision for, liabilities falling to be met out of the deceased’s |
| |
estate, the free balance held in trust for the residuary legatees or for the persons |
| |
with the right to the intestate estate has been ascertained. |
| |
(3) | In this Chapter “the final accounting period” means the accounting period in |
| 15 |
which the administration period ends. |
| |
(4) | In this Chapter “the final tax year” means the tax year in which the |
| |
administration period ends. |
| |
939 | Limited interests in residue |
| |
(1) | Income is treated as arising in an accounting period from a company’s limited |
| 20 |
interest in the whole or part of the residue of an estate in cases A, B and C. |
| |
| |
(a) | the interest has not ceased before the beginning of the accounting |
| |
| |
(b) | a sum is paid in respect of the interest in that period and before the end |
| 25 |
of the administration period. |
| |
| |
(a) | the accounting period is the final accounting period, |
| |
(b) | the interest has not ceased before the beginning of that period, and |
| |
(c) | a sum remains payable in respect of the interest at the end of the |
| 30 |
| |
| |
(a) | the accounting period is a period before the final accounting period, |
| |
(b) | the interest ceases in the accounting period, and |
| |
(c) | a sum is paid in respect of the interest in a later accounting period but |
| 35 |
before the end of the administration period, or remains payable in |
| |
respect of it at the end of the administration period. |
| |
(5) | This section does not apply to limited interests to which section 957 (successive |
| |
interests: holders of limited interests) applies. |
| |
(6) | Income treated as arising as a result of this section or section 957 is estate |
| 40 |
income for the purposes of this Chapter. |
| |
|
| |
|