Taxes Consolidation Act 1997 section 801

Absolute interest in residue

Section 801 sets out the rules for taxing a beneficiary who has an absolute interest in the residue of a deceased person's estate during the administration period.

• The beneficiary's residuary income is calculated for each tax year (or part) during which the administration period was current and the beneficiary held the interest, based on the residuary income of the estate as determined under section 802.
• Interim payments made to the beneficiary during the administration period are treated as income for the relevant tax year, and in the case of an Irish estate are deemed to have been received net of standard rate income tax.
• On completion of the administration, final adjustments are made so that the beneficiary is taxed on the full residuary income for each tax year, with any over- or under-charge on interim payments corrected under section 804.
• Income from a foreign estate is chargeable under Case III of Schedule D, with relief available where part of the estate income has already borne Irish income tax.