Taxes Consolidation Act 1997 section 802

Supplementary provisions as to absolute interest in residue

Section 802 sets out how the residuary income of a deceased person's estate is calculated for the purposes of taxing beneficiaries with an absolute interest under section 801.

• The residuary income of an estate for a tax year is the aggregate income of the estate for that year, reduced by charges on the residue, management expenses properly chargeable to income, and any income to which a beneficiary has become entitled under a specific disposition.
• Benefits received by a residuary beneficiary are calculated as the grossed-up equivalent (at the standard rate of income tax) of all sums paid during or on completion of the administration period in the case of an Irish estate, or as the actual sums paid in the case of a foreign estate.
• Where the total benefits received by a residuary beneficiary fall short of the aggregate residuary income for all tax years of the administration period, the beneficiary's residuary income for each year is proportionately reduced to reflect the deficiency.
• Where more than one person held an absolute interest in the residue during the administration period, the benefits received and residuary income of all such persons are aggregated together to determine whether a proportionate reduction is required.