Corporation Tax Act 2009 section 936

Meaning of "UK estate" and "foreign estate"

Section 936 defines what constitutes a "UK estate" and a "foreign estate" for the purposes of taxing income from estates being administered after someone's death.

• A UK estate is one where all income has borne UK income tax (by deduction or direct assessment) and none of the income escapes UK tax due to the personal representatives being non-UK resident
• Alternatively, an estate qualifies as a UK estate if its only income consists of sums treated as bearing income tax under section 963
• A foreign estate is simply any estate that does not meet the conditions to be a UK estate for the relevant tax year
• When testing whether all income has borne UK tax, sums that are merely treated as bearing income tax under section 963 are disregarded