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HMRC internal manual

Trusts, Settlements and Estates Manual

Deceased persons: absolute interests in residue - definition

There is a statutory definition of the term `absolute interest in residue’ in ITTOIA/S650(1) for non-corporate beneficiaries, and in CTA 2009/S935(1) for corporate beneficiaries.

The `residue of the estate’ is what is left after the personal representatives have paid or made provision for

  • the deceased’s debts and funeral expenses
  • the expenses of administering the estate
  • legacies or annuities
  • in Scotland, the prior and legal rights of the surviving spouse or civil partner, and the legal rights of children.

Under the terms of a will or the rules of intestacy a beneficiary might be entitled to receive the whole or part of the residue. When the administration of the estate is completed the beneficiary will be entitled to a capital sum representing the residue or a share of the residue. A person who is entitled in this way has an absolute interest in residue.