Corporation Tax Act 2009 section 941

UK estates

Section 941 sets out how the amount of estate income from a UK estate is calculated for corporation tax purposes, including the grossing-up mechanism and the deemed deduction of income tax.

• Estate income from a UK estate is charged to corporation tax on the basic amount of income for the accounting period, grossed up at the applicable rate.
• The grossed-up amount is treated as having already had income tax deducted at that applicable rate.
• The basic amount of estate income is determined separately depending on the type of interest held — absolute, limited, discretionary, or successive limited interests.
• Different rules apply to income from foreign estates, which are dealt with separately under section 942.