Taxes Consolidation Act 1997 section 800

Limited interest in residue

Section 800 sets out how beneficiaries with a limited interest in the residue of a deceased person's estate are taxed on payments received during and on completion of the administration period.

• Interim payments to a beneficiary during the administration period are taxed as income of the year in which they are paid; if the interest has ceased, they are taxed in the last year the interest subsisted.
• On completion of the administration, all payments are aggregated, apportioned on a day-to-day basis over the administration period, and taxed accordingly — with adjustments made to any earlier interim charges.
• Payments from an Irish estate are treated as income received net of standard-rate income tax; payments from a foreign estate are taxable under Schedule D Case III as foreign-source income.
• Where a foreign estate has borne Irish income tax on part of its aggregate income, the beneficiary's charge may be proportionately reduced, and the reduced portion is treated as income received net of standard-rate tax.