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Absolute interests in residue.
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452.—(1) The following provisions of this section shall have effect in relation to a person who, during the administration period or during a part of that period, has an absolute interest in the residue of the estate of a deceased person or in a part thereof.
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(2) There shall be ascertained in accordance with section 453 the amount of the residuary income of the estate for each whole year of assessment, and for each broken part of a year of assessment, during which—
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(a) the administration period was current, and
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(b) that person had that interest,
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and the amount so ascertained in respect of any year or part of a year or, in the case of a person having an absolute interest in a part of a residue, a proportionate part of that amount, is in this Part referred to as the “residuary income” of that person for that year of assessment.
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(3) When any sum or sums has or have been paid during the administration period in respect of that absolute interest, the amount of that sum or the aggregate amount of those sums shall, subject to the provisions of subsection (4), be deemed for all the purposes of this Act to have been paid to that person as income to the extent to which, and for the year or years of assessment for which, he would have been treated for those purposes as having received income if he had had a right to receive in each year of assessment—
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(a) in the case of an Irish estate, his residuary income for that year less income tax for that year, at the standard rate of tax, or
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(b) in the case of a foreign estate, his residuary income for that year,
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and that sum or the aggregate of those sums had been available for application primarily in or towards satisfaction of those rights as they accrued and had been so applied.
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In the case of an Irish estate, any amount which is deemed to have been paid to that person as income for any year by virtue of this subsection shall be deemed to be income of such an amount as would after deduction of income tax at the standard rate of tax for that year be equal to the amount deemed to have been so paid, and to be income which has borne income tax at the standard rate of tax.
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(4) On the completion of the administration of the estate—
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(a) the amount of the residuary income of that person for any year of assessment shall be deemed for all the purposes of this Act to have been paid to him as income for that year, and in the case of an Irish estate shall be deemed to have borne tax by reference to the standard rate of tax; and
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(b) where the amount which is deemed to have been paid to that person as income for any year by virtue of this subsection is less or greater than the amount deemed to have been paid to him as income for that year by virtue of subsection (3), such adjustments shall be made as are hereafter provided in this Part.
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(5) In the case of a foreign estate, any amount which is deemed to have been paid to that person as income for any year by virtue of this section shall be deemed to be income of that amount, and shall be chargeable to income tax under Case III of Schedule D as if it were income arising from securities in a place outside the State.
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(6) Where a person has been charged to income tax by virtue of this section in the circumstances mentioned in section 451 (5), the provisions of section 451 (5) shall have effect as they have effect where a person has been charged to income tax by virtue of that section in those circumstances.
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