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HMRC internal manual

International Manual

DT applications and claims: Income from Estates

Claims by beneficiaries of a UK estate

A distribution made to a beneficiary of income received by a UK estate during its administration period is considered to be a source of income in its own right.

Where a beneficiary receives a distribution of income that has arisen during the administration of a UK estate, that beneficiary may be entitled to relief on the income under a Double Taxation treaty. Relief will be available in one of two ways:

  • Other Income article: where an other income article of a treaty does not exclude income paid out of a UK estate, that income is considered as other income. A list of other income articles that allow relief on income from a UK estate is at INTM367530.

The beneficiary is entitled to full relief from the total tax deemed to have been paid on the income.

  • Extra Statutory Concession A14: where it is not possible to relieve the income under an other income article, Extra Statutory Concession A14 allows us to look through to the underlying sources of income received by an estate and allow relief as if the beneficiary owned the sources of income in their own right.

For information about claims by personal representatives of estates, and for background information and definitions concerning estates, see INTM340000.

How to recognise a claim on income from a UK estate

If income arises from a UK estate it will normally be shown on an R185 (Estate Income)(formerly R185E) tax certificate prepared by the personal representative(s) showing the rate(s) at which the sources of income have been taxed. The form R185 (Estate Income) is for use by executors of UK estates only, as stated on the ‘Notes for Executors and Administrators’ on the reverse of the form. If you receive an R185 that you believe may have been completed by a non-resident personal representative or in respect of a foreign estate, please seek assistance from Technical Advice Group before you take any action.