Section 91: Administration period., Inheritance Tax Act 1984

Where a person would have been entitled to an interest in possession in the whole or part of the residue of the estate of a deceased person had the administration of that estate been completed, the same consequences shall follow under this Act as if he had become entitled to an interest in possession in the unadministered estate and in the property (if any) representing ascertained residue, or in a corresponding part of it, on the date as from which the whole or part of the income of the residue would have been attributable to his interest had the residue been ascertained immediately after the death of the deceased person.

In this section—

"unadministered estate" means all the property for the time being held by personal representatives as such, excluding property devolving on them otherwise than as assets for the payment of debts and excluding property that is the subject of a specific disposition, and making due allowance for outstanding charges on residue and for any adjustments between capital and income remaining to be made in due course of administration;

"ascertained residue" means property which, having ceased to be held by the personal representatives as such, is held as part of the residue;

subject to subsection (3) below, "charges on residue" means, in relation to the estate of a deceased person, the following liabilities properly payable out of the estate and interest payable in respect of those liabilities—

funeral, testamentary and administration expenses and debts,

general legacies, demonstrative legacies, annuities and any sum payable out of the residue of the estate to which a person is entitled under the law of intestacy of any part of the United Kingdom or any other country, and

any other liabilities of the deceased person's personal representatives as such,

"specific disposition" has the meaning given in section 947(6) of the Corporation Tax Act 2009, and

the reference to the completion of the administration of the estate shall be construed as if it were in Chapter 3 of Part 10 of that Act.

If, as between—

persons interested under a specific disposition or in a general or demonstrative legacy or in an annuity, and

persons interested in the residue of an estate,

any such liabilities as are mentioned in paragraph (c) of subsection (2) above fall exclusively or primarily on the property that is the subject of the specific disposition or on the legacy or annuity, only such part (if any) of those liabilities as falls ultimately on the residue shall be treated as charges on residue.

In the application of this section to Scotland, "charges on residue" shall include, in addition to the liabilities specified in subsection (2)(c), any sums required to meet—

claims in respect of prior rights or legal rights by a surviving spouse or civil partner, or

claims in respect of legal rights by children.

Section 91: Administration period.

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