(1) The acquisition of a licence in respect of a patent is treated for the purposes of this Chapter as a purchase of patent rights.
(2) The grant of a licence in respect of a patent is treated for the purposes of this Chapter as a sale of part of patent rights.
(3) But the grant by a person entitled to patent rights of an exclusive licence is treated for the purposes of this Chapter as a sale of the whole of those rights.
(4) In subsection (3) “exclusive licence” means a licence to exercise the rights to the exclusion of the grantor and all other persons for the period remaining until the rights come to an end.
(1) If a sum is paid to obtain a right to acquire future patent rights, then for the purposes of this Chapter—
(a) the payer is treated as purchasing patent rights for that sum, and
(b) the recipient is treated as selling patent rights for that sum.
(2) If a person—
(a) pays a sum to obtain a right to acquire future patent rights, and
(b) subsequently acquires those rights,
the expenditure is to be treated for the purposes of this Chapter as having been expenditure on the purchase of those rights.
(3) In this section “a right to acquire future patent rights” means a right to acquire in the future patent rights relating to an invention in respect of which the patent has not yet been granted.
923 Sums paid for Crown use etc treated as paid under licence
(1) This section applies if an invention which is the subject of a patent is used by or for the service of—
(a) the Crown under sections 55 to 59 of the Patents Act 1977 (c. 37), or
(b) the government of a country outside the United Kingdom under corresponding provisions of the law of that country.
(2) The use is treated for the purposes of this Chapter as having taken place under licence.
(3) Sums paid in respect of the use are treated for the purposes of this Chapter as having been paid under a licence.
(1) Relief may be claimed under this section for patent application and maintenance expenses.
(2) In this section “patent application and maintenance expenses” means expenses incurred by a company in connection with—
(a) the grant or maintenance of a patent,
(b) the extension of the term of a patent, or
(c) a rejected or abandoned application for a patent,
but not incurred for the purposes of any trade carried on by the company.
(3) Relief may not be claimed under this section for patent application and maintenance expenses unless they are expenses which would, if incurred for the purposes of a trade, have been allowable as a deduction in calculating the profits of the trade.
(4) This section needs to be read with section 926 (contributions to expenditure).
(1) This section sets out how relief for expenses is given where a company makes a claim under section 924.
(2) The amount of the expenses must be deducted from or set off against the company's income from patents for the accounting period in which the expenses were incurred.
(3) If the amount to be allowed is greater than the amount of the company's income from patents for that accounting period, then (so long as the company remains within the charge to corporation tax) the excess must be deducted from or set off against the company's income from patents for the next accounting period, and so on for subsequent accounting periods, without the need for a further claim.
(4) In this section “income from patents” means—
(a) royalties or other sums paid in respect of the use of a patent,
(b) amounts on which tax is payable under section 912, 918 or 1272, and
(c) amounts on which tax is payable under—
(i) section 472(5) of CAA 2001 (patent allowances: balancing charges), or
(ii) paragraph 100 of Schedule 3 to that Act (balancing charges in respect of pre-1st April 1986 expenditure on purchase of patent rights),
but does not include any amount chargeable to income tax.
(5) In this section references to a company's income from patents are to the income after any allowance has been deducted from or set off against it under section 480 of CAA 2001 (certain allowances against income from patents).
(1) For the purposes of sections 910, 913 and 924, the general rule is that a company is to be regarded as not having incurred expenditure so far as it has been, or is to be, met (directly or indirectly) by—
(a) a public body, or
(b) a person other than the company.
(2) In this Chapter “public body” means the Crown or any government, local authority or other public authority (whether in the United Kingdom or elsewhere).
(3) The general rule does not apply to the expenses mentioned in section 913(2)(b) (incidental expenses incurred by a seller of patent rights).
(4) The general rule is subject to the exception in section 927.
927 Contributions not made by public bodies nor eligible for tax relief
(1) A company is to be regarded as having incurred expenditure (despite section 926(1)) so far as the requirements in subsections (2) and (3) are met in relation to the expenditure.
(2) The first requirement is that the person meeting the company's expenditure (“X”) is not a public body.
(3) The second requirement is that—
(a) no allowance can be made under Chapter 2 of Part 11 of CAA 2001 (contribution allowances) in respect of X's expenditure, and
(b) the expenditure is not allowed to be deducted in calculating the profits of a trade, profession or vocation carried on by X.
(4) When determining for the purposes of subsection (3)(a) whether such an allowance can be made, assume that X is within the charge to tax.
(1) In this Part references to the sale of property include the exchange of property.
(2) In this section—
references to property include know-how, and
references to the sale of property include the disposal of know-how.
(3) For the purposes of subsection (1), any provision of this Part referring to a sale has effect with the necessary modifications, including, in particular, those in subsections (4) and (5).
(4) References to the proceeds of sale and to the price include the consideration for the exchange.
(5) References to capital sums included in the proceeds of sale include references to so much of the consideration for the exchange as would have been a capital sum if it had been a money payment.
(1) Any reference in this Part to the sale of property includes the sale of that property together with other property.
(2) In this section—
references to property include know-how, and
references to the sale of property include the disposal of know-how.
(3) For the purposes of subsection (1), all property sold as a result of one bargain is to be treated as sold together even though—
(a) separate prices are, or purport to be, agreed for separate items of that property, or
(b) there are, or purport to be, separate sales of separate items of that property.
(4) If an item of property is sold together with other property, then, for the purposes of the charges under sections 908 and 912—
(a) the net proceeds of the sale of that item are treated as being so much of the net proceeds of the sale of all the property as, on a just and reasonable apportionment, is attributable to that item, and
(b) the expenditure incurred on the provision or purchase of that item is treated as being so much of the consideration given for all the property as, on a just and reasonable apportionment, is attributable to that item.
930 Questions about apportionments affecting two or more persons
(1) Any question about the way in which a sum is to be apportioned under section 929 must be determined in accordance with section 563(2) to (6) of CAA 2001 (procedure for determining certain questions affecting two or more persons) if it materially affects two or more taxpayers.
(2) For the purposes of subsection (1) a question materially affects two or more taxpayers if at the time when the question falls to be determined it appears that the determination is material to the liability to tax (for whatever period) of two or more persons.
(1) The charge to corporation tax on income applies to any dividend or other distribution of a company, but only if the distribution is not exempt.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) A distribution is exempt for the purposes of this Part if it is exempt under—
(a) Chapter 2 (distributions received by small companies), or
(b) Chapter 3 (distributions received by companies that are not small).
A dividend or other distribution of a company that is received in an accounting period of the recipient in which the recipient is a small company is exempt if—
(a) the payer is a resident of (and only of) the United Kingdom or a qualifying territory at the time that the distribution is received,
(b) the distribution is not of a kind mentioned in paragraph E or F in section 1000(1) of CTA 2010 (certain non-dividend distributions),
(c) no deduction is allowed to a resident of any territory outside the United Kingdom under the law of that territory in respect of the distribution, and
(d) the distribution is not made as part of a tax advantage scheme.
(1) For the purpose of section 931B a territory is a “qualifying territory” if—
(a) arrangements made in relation to the territory have effect under section 2(1) of TIOPA 2010 (“double taxation relief arrangements”), and
(b) the arrangements contain a non-discrimination provision.
(2) The Treasury may by regulations—
(a) provide that a territory specified in or of a description specified in the regulations that does not satisfy subsection (1)(a) or (b) is a qualifying territory for the purpose of section 931B, and
(b) provide that a territory so specified or described that satisfies subsection (1)(a) and (b) is not a qualifying territory for that purpose.
(3) For the purpose of section 931B a company is a resident of a territory if, under the laws of the territory, the company is liable to tax there—
(a) by reason of its domicile, residence or place of management, but
(b) not in respect only of income from sources in that territory or capital situated there.
(4) In subsection (1) “non-discrimination provision”, in relation to double taxation relief arrangements, means a provision to the effect that nationals of a state which is a party to those arrangements (a “contracting state”) are not to be subject in any other contracting state to—
(a) any taxation, or
(b) any requirement connected with taxation,
which is other or more burdensome than the taxation and connected requirements to which nationals of that other state in the same circumstances (in particular with respect to residence) are or may be subjected.
(5) In subsection (4) “national”, in relation to a contracting state, includes—
(a) an individual possessing the nationality or citizenship of the contracting state, and
(b) a legal person, partnership or association deriving its status as such from the laws in force in that contracting state.
(6) Regulations under this section may—
(a) describe a territory by reference to the double taxation relief arrangements for the time being in force in relation to the territory,
(b) make different provision in relation to different descriptions of company, and
(c) make provision having effect in relation to accounting periods current on the day on which the regulations are made.
931CA Further exemption where distribution received from CFC
(1) Subsection (2) applies if—
(a) under Part 9A of TIOPA 2010 (controlled foreign companies), the CFC charge is charged in relation to a CFC's accounting period,
(b) a dividend or other distribution of the CFC is received in an accounting period (for corporation tax purposes) of the recipient in which the recipient is a small company,
(c) the whole or a part of the distribution is paid in respect of profits which are chargeable profits of the CFC for its accounting period mentioned in paragraph (a), and
(d) the requirements of section 931B(b) to (d) are met in relation to the distribution.
(2) The distribution is exempt.
(3) If part of the distribution is not paid in respect of chargeable profits—
(a) for the purposes of this Part and Part 2 of TIOPA 2010 that part of the distribution is treated as a separate distribution, and
(b) subsection (2) does not apply to that separate distribution.
(4) In this section references to chargeable profits of the CFC are limited to chargeable profits so far as apportioned to chargeable companies at step 3 in section 371BC(1) of TIOPA 2010.
A dividend or other distribution of a company that is received in an accounting period of the recipient in which the recipient is not a small company is exempt if—
(a) the distribution falls into an exempt class (see sections 931E to 931Q),
(b) the distribution is not of a kind mentioned in paragraph E or F in section 1000(1) of CTA 2010 (certain non-dividend distributions), and
(c) no deduction is allowed to a resident of any territory outside the United Kingdom under the law of that territory in respect of the distribution.
(1) A dividend or other distribution falls into an exempt class if condition A or B is met.
(2) Condition A is that the recipient controls the payer.
(3) Condition B is that—
(a) the recipient is one of two persons who, taken together, control the payer,
(b) the recipient has interests, rights and powers representing at least 40% of the holdings, rights and powers in respect of which the recipient and the second person fall to be taken as controlling the payer, and
(c) the second person has interests, rights and powers representing—
(i) at least 40%, but
(ii) no more than 55%,
of the holdings, rights and powers in respect of which the recipient and the second person fall to be taken as controlling the payer.
(4) Section 371RB of TIOPA 2010 (read with section 371RD of that Act) applies for the purposes of this section.
(5) Section 371RD of TIOPA 2010 applies for the purpose of determining if the requirements of subsection (3)(b) and (c) are met in any case.
(6) In subsections (4) and (5) references to section 371RD of TIOPA 2010 are to that section omitting subsection (3)(c) and (d).
931F Distributions in respect of non-redeemable ordinary shares
A dividend or other distribution falls into an exempt class if it is made in respect of a share that—
(a) is an ordinary share, and
(b) is not redeemable.
931G Distributions in respect of portfolio holdings
(1) A dividend or other distribution falls into an exempt class if the recipient—
(a) holds less than 10% of the issued share capital of the payer,
(b) is entitled to less than 10% of the profits available for distribution to holders of the issued share capital of the payer, and
(c) would be entitled on a winding up to less than 10% of the assets of the company available for distribution to holders of the issued share capital of the payer.
(2) Where the payer has more than one class of share, references in subsection (1) to the issued share capital of the payer are to issued share capital of the same class as the share in respect of which the distribution is made.
(3) For the purposes of this section shares are not of the same class if the amounts paid up on them (otherwise than by way of premium) are different.
931H Distributions derived from transactions not designed to reduce tax
(1) A dividend or other distribution falls into an exempt class if it is made in respect of relevant profits.
(2) In this section “relevant profits” means any profits available for distribution at the time that the distribution is made, other than profits that reflect the results of a transaction, or of one or more of a series of transactions, where—
(a) the transaction or series of transactions achieve a reduction (other than a negligible reduction) in United Kingdom tax, and
(b) the purpose or one of the main purposes of that transaction or series of transactions is to achieve that reduction.
(3) A distribution that falls into an exempt class otherwise than by virtue of this section is for the purposes of this section treated, so far as possible, as made in respect of relevant profits.
(4) Any other distribution is for the purposes of this section treated, so far as possible, as made in respect of profits other than relevant profits.
(5) Where by virtue of subsection (4) part of a distribution is treated as made in respect of relevant profits and part is treated as made in respect of profits other than relevant profits, the two parts are treated for the purposes of this Part and Part 2 of TIOPA 2010 (double taxation relief) as separate distributions.
931I Dividends in respect of shares accounted for as liabilities
A dividend falls into an exempt class if the dividend is paid in respect of a share to which, at the time of the payment, section 521C (shares accounted for as liabilities treated as loan relationships) does not apply only because the condition in subsection (1)(f) of that section is not met.
931J Schemes involving manipulation of controlled company rules
(1) This section applies to a dividend that would, apart from this section, fall into an exempt class by virtue of section 931E.
(2) The dividend does not fall into an exempt class by virtue of that section if—
(a) the dividend is paid as part of a scheme the main purpose, or one of the main purposes, of which is to secure that dividends of the payer received by the recipient fall into an exempt class by virtue of that section, and
(b) the following condition is met.
(3) The condition is that the dividend is paid in respect of pre-control profits.
(4) A dividend that falls into an exempt class otherwise than by virtue of section 931E is for the purposes of this section treated, so far as possible, as paid in respect of profits other than pre-control profits.
(5) Any other dividend is for the purposes of this section treated, so far as possible, as paid in respect of pre-control profits.
(6) In this section “pre-control profits” means any profits available for distribution at the time the dividend is paid that arose at a time when neither condition A nor condition B in section 931E was met.
(7) Where—
(a) the condition in subsection (2)(a) is met, and
(b) by virtue of subsection (5) part of a dividend is treated as paid in respect of pre-control profits and part is treated as paid in respect of profits other than pre-control profits,
the two parts are treated for the purposes of this Part and Part 2 of TIOPA 2010 (double taxation relief) as separate dividends.
931K Schemes involving quasi-preference or quasi-redeemable shares
(1) This section applies to a dividend or other distribution that would, apart from this section, fall into an exempt class by virtue of section 931F.
(2) The distribution does not fall into an exempt class by virtue of that section if—
(a) the distribution is made as part of a scheme the main purpose, or one of the main purposes, of which is to secure that distributions of the payer received by the recipient fall into an exempt class by virtue of that section, and
(b) the following condition is met.
(3) The condition is that the distribution is made in respect of a share that—
(a) would not be an ordinary share, or
(b) would be redeemable,
were the rights under the scheme of each relevant person to be attached to the share.
931L Schemes involving manipulation of portfolio holdings rule
(1) This section applies to a dividend or other distribution that would, apart from this section, fall into an exempt class by virtue of section 931G.
(2) The distribution does not fall into an exempt class by virtue of that section if—
(a) the distribution is made as part of a scheme the main purpose, or one of the main purposes, of which is to secure that distributions of the payer received by the recipient fall into an exempt class by virtue of that section, and
(b) the following condition is met.
(3) The condition is that the distribution would not fall into an exempt class by virtue of section 931G if the reference in subsection (1) of that section to the recipient were to all relevant persons taken together.
(1) This section applies to a dividend or other distribution that does not fall into an exempt class by virtue of section 931E but would, apart from this section, fall into an exempt class otherwise than by virtue of that section.
(2) The distribution does not fall into an exempt class if—
(a) the distribution is made as part of a tax advantage scheme, and
(b) conditions A to C are met.
(3) Condition A is that the distribution constitutes part of a return in relation to an amount that is produced by the scheme for a relevant person, or two or more relevant persons taken together.
(4) Condition B is that the return is economically equivalent to interest.
(5) For this purpose a return produced for a person or persons by a scheme in relation to an amount is “economically equivalent to interest” if (and only if)—
(a) it is reasonable to assume that it is a return by reference to the time value of that amount of money,
(b) it is at a rate reasonably comparable to a commercial rate of interest, and
(c) at the time the scheme is entered into by the person or any of the persons, there is no practical likelihood that it will cease to be produced in accordance with the scheme.
(6) Condition C is that there is a connection between the payer and the recipient for the accounting period of the payer in which the distribution is made.
(7) Section 466 (companies connected for an accounting period) applies for the purposes of subsection (6) as if that subsection were a provision of Part 5 to which that section is applied (but this does not affect the application of section 1316(1) (meaning of connected persons) for the purposes of any other provision of this Part).
931N Schemes involving distributions for which deductions are given
(1) This section applies to a dividend or other distribution that would, apart from this section, fall into an exempt class.
(2) The distribution does not fall into an exempt class if—
(a) the distribution is made as part of a tax advantage scheme, and
(b) the following condition is met.
(3) The condition is that a deduction is allowed to a resident of any territory outside the United Kingdom under the law of that territory in respect of an amount determined by reference to the distribution.
(1) This section applies to a dividend or other distribution that would, apart from this section, fall into an exempt class.
(2) The distribution does not fall into an exempt class if—
(a) the distribution is made as part of a tax advantage scheme, and
(b) the following condition is met.
(3) The condition is that the scheme includes a payment, or the giving up of a right to income, by a relevant person where—
(a) the payment is made, or the right to income is given up, under a liability incurred for consideration in money or money's worth all or any of which consists of, or of the right to receive, the distribution, and
(b) in the case of a payment, the conditions in subsections (2) and (4) to (7) of section 1301 (restriction of deductions for annual payments) apply to the payment.
931P Schemes involving payments not on arm's length terms
(1) This section applies to a dividend or other distribution that would, apart from this section, fall into an exempt class.
(2) The distribution does not fall into an exempt class if—
(a) the distribution is made as part of a tax advantage scheme, and
(b) the following condition is met.
(3) The condition is that—
(a) the scheme includes a payment or receipt, or the giving up of a right to income, by a relevant person in respect of goods or services, and
(b) the amount of the payment or receipt, or the amount of income given up, differs from the amount the relevant person would have paid, received or given up in respect of those goods or services had the distribution not been made.
(4) This section does not apply to a scheme that consists of a transaction or series of transactions in relation to which Part 4 of TIOPA 2010 (provision not at arms length between parties under common control) applies.
(1) This section applies to a dividend or other distribution that would, apart from this section, fall into an exempt class.
(2) The distribution does not fall into an exempt class if—
(a) the distribution is made as part of a scheme entered into by the recipient and another relevant person (“C”),
(b) if C had received the distribution, it would be reasonable to assume that the distribution would be dealt with under Part 3 (trading income), and
(c) the main purpose, or one of the main purposes, of the scheme is to produce the result that the distribution is dealt with under this Part because it is received by the recipient.
(3) For the purposes of subsection (2)(b) it is to be assumed that, in the case of any relevant transaction to which a relevant person other than C is a party, C were that party to that transaction.
(4) In this section “relevant transaction” means any of the transactions giving rise to the distribution.
931R Election that distribution should not be exempt
(1) This section applies where, apart from this section, a distribution (“the distribution”) would be exempt.
(2) If the recipient so elects, the distribution is not exempt.
(3) An election under this section must be made on or before the second anniversary of the end of the accounting period in which the distribution is received.
(4) Subsection (5) applies where the distribution is a dividend that is treated for certain purposes of Part 18 of ICTA (double taxation relief) as two separate dividends by virtue of section 801C of that Act (separate streaming of dividend so far as representing an ADP dividend of a CFC).
(5) If the recipient so elects—
(a) the distribution is to be treated for the purposes of this Part as if it were an ADP dividend and a separate residual dividend as provided for in that section of that Act, and
(b) the ADP dividend is not exempt.
(6) The reference in subsection (4) to section 801C of ICTA is to that section as it continues to have effect in accordance with paragraph 8(1) of Schedule 16 to FA 2009 in relation to dividends paid on or after 1 July 2009 for accounting periods beginning before that day.
(1) For the purposes of this Part a company is a “small company” in an accounting period if it is in that period a micro or small enterprise, as defined in the Annex to Commission Recommendation 2003/361/EC of 6 May 2003.
(2) But a company is not a “small company” in an accounting period if it is at any time in that period—
(a) an open-ended investment company,
(b) an authorised unit trust scheme,
(c) an insurance company, or
(d) a friendly society.
(3) In subsection (2)—
“open-ended investment company” has the meaning given by section 236 of FISMA 2000;
“authorised unit trust scheme” means a unit trust scheme (within the meaning given by section 237 of FISMA 2000) in relation to which a order under section 243 of that Act (authorisation orders) is in force;
“insurance company” has the meaning given by section 65 of FA 2012;
“friendly society” has the meaning given by section 172 of FA 2012.
931T Meaning of “payer”, “recipient” and “relevant person”
In this Part—
“the payer”, in relation to a distribution, means the company that makes the distribution;
“the recipient”, in relation to a distribution, means the company that receives the distribution;
“a relevant person”, in relation to a distribution, means—
the company that receives the distribution, or
any person connected with that company.
(1) In this Part “ordinary share” means a share that does not carry any present or future preferential right to dividends or to a company's assets on its winding up.
(2) A share is regarded as “redeemable” for the purposes of this Part only if it is redeemable as a result of its terms of issue (or any collateral arrangements)—
(a) requiring redemption,
(b) entitling the holder to require redemption, or
(c) entitling the issuing company to redeem.
931V Meaning of “scheme” and “tax advantage scheme”
“(1) For the purposes of this Part—
“scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions;
“tax advantage scheme” means a scheme the main purpose, or one of the main purposes, of which is to obtain a tax advantage (other than a negligible tax advantage).
(2) In this section “tax advantage” has the meaning given by section 1139 of CTA 2010.
931W Provisions which must be given priority over this Part
(1) Any income so far as it falls within—
(a) this Part, and
(b) Chapter 2 of Part 3 (income taxed as trade profits),
is dealt with under Part 3.
(2) Any income so far as it falls within—
(a) this Part, and
(b) Chapter 3 of Part 4 (profits of property businesses) so far as the Chapter relates to a UK property business,
is dealt with under Part 4.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) This Part applies the charge to corporation tax on income to—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) beneficiaries' income from estates in administration (see Chapter 3),
(c) income from the holding of an office (see Chapter 4),
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) income treated as arising from the sale or other realisation of dividend coupons in respect of foreign holdings (see Chapter 6),
(f) annual payments not otherwise charged to corporation tax (see Chapter 7), and
(g) other income not otherwise charged to corporation tax (see Chapter 8).
(2) Chapter 9 contains rules that give priority to provisions outside this Part in relation to matters that fall within Chapter 2, 5 or 6.
(3) This Part needs to be read with Part 19 (general exemptions).
(1) The charge to corporation tax on income applies to estate income.
(1A) But corporation tax is not charged on estate income so far as that income consists of a basic amount which section 962 treats as having been paid from de minimis aggregate income.
(1B) In subsection (1A), “de minimis aggregate income” means aggregate income of an estate which is treated as bearing income tax at 0% because of section 963(1A).
(2) In this Chapter—
“estate” means the estate of a deceased person (whether a UK estate or a foreign estate), and
“estate income” means the income treated under this Chapter as arising from an absolute, limited or discretionary interest in the whole or part of the residue of an estate.
(3) If different parts of an estate are subject to different residuary dispositions, those parts are treated for the purposes of this Chapter as if they were separate estates.
(1) A person has an absolute interest in the whole or part of the residue of an estate for the purposes of this Chapter if—
(a) the capital of the residue or that part is properly payable to the person, or
(b) it would be so payable if the residue had been ascertained.
(2) A person has a limited interest in the whole or part of the residue of an estate during any period for the purposes of this Chapter if—
(a) the person does not have an absolute interest in it, and
(b) the income from it would be properly payable to the person if the residue had been ascertained at the beginning of that period.
(3) A person has a discretionary interest in the whole or part of the residue of an estate for the purposes of this Chapter if—
(a) a discretion may be exercised in the person's favour, and
(b) on its exercise in the person's favour any of the income of the residue during the whole or part of the administration period (see section 938) would be properly payable to the person if the residue had been ascertained at the beginning of that period.
(4) For the purposes of this section, an amount is only treated as properly payable to a person (“A”) if—
(a) it is properly payable to A, or to another person in A's right, for A's benefit, or
(b) A is a personal representative and subsection (5) applies.
(5) The personal representatives of a deceased person (“B”) are to be treated as having an absolute or limited interest in the whole or part of the residue of the estate of another deceased person (“C”) if—
(a) they have a right in their capacity as B's personal representatives, and
(b) were the right vested in them for their own benefit, they would have that interest in C's estate.
(6) For the purposes of subsection (4), it does not matter whether the amount is payable directly by the personal representatives or through a trustee or other person.