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This guidance note should be read in conjunction with the Income tax for beneficiaries of estates guidance note which explains the general principles under which estate income is recorded and distributed.

Beneficiaries’ entitlement to estate income, and consequently their liability to income tax, depends on the nature of their interest under the Will or intestacy. In the majority of estates, the only type of beneficiary interest which gives rise to an income tax liability on estate income is an absolute interest in residue, which is covered in the Income tax for beneficiaries of estates guidance note. This guidance note focuses on other types of interest which may give rise to an income tax liability, as follows:

1. •

   specific legatee

2. •

   pecuniary legatee

3. •

   limited interests

4. •

   discretionary interests

5. •

   successive interests

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