New queries, issue 4576

Anybody out there?

Deducting admin expenses on calculating beneficiary’s residuary income.

I have been wrestling with the impact of new rules on the method of calculating the beneficiary’s residuary income and I am seeking readers’ views on whether anyone still allows an arbitrary deduction for administration expenses.

ITTOIA ch 5 specifically s 666 allows for the deduction of expenses. In practice I always applied it at the rate of 7% because that was what I had been trained to do as evidenced in my old training notes from August 1998. At that time it was accepted practice for the Revenue to allow a round sum deduction of (I understood) anything up to 10% for administration expenses and the notes that used to be sent out with the old form 922 (Statement of Residuary Income) made reference to that.

I did try...