Plain language law

New Zealand law explained for everyone

HC 4: Corpus of trust
or “Property settled on a trust, excluding certain types”

You could also call this:

“How trustees categorise income they receive or are deemed to receive”

When you’re a trustee of a trust and you receive income in a year, it can be one of two types. The first type is called beneficiary income, which is explained in section HC 6. The second type is called trustee income, which is explained in section HC 7.

Sometimes, the law might say you have income even if you didn’t actually receive any money. In these cases, you treat this ‘pretend’ income as if you really got it during that year. This rule applies when thinking about beneficiary income and trustee income too.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: HC 6: Beneficiary income

or “Income given to trust beneficiaries within specific timeframes”

Home
Income Tax Act 2007
Taxation of certain entities
HC 5: Amounts derived by trustees

Part H Taxation of certain entities
Trusts

HC 5Amounts derived by trustees

An amount of income derived in an income year by a trustee of a trust is either—
beneficiary income under section HC 6; or
trustee income under section HC 7.

For the purposes of subsection (1) and sections HC 6 and HC 7, if the trustee is treated as having an amount of income in the income year under a provision in this Act and the amount is not derived under ordinary concepts, then the amount is treated as derived in the income year.