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HR 13: Lloyd’s of London: life insurance
or “Tax rules for Lloyd's of London underwriters on NZ life insurance income”
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“Money from older trusts: special tax rules for pre-1989 income”

When you get money from a trust, there are some special rules. These rules apply to trusts that are not unit trusts, group investment funds, or superannuation schemes.

If the money you get comes from income or a capital gain that the trust made in the 1987-88 tax year or earlier, and it’s not income that you’re entitled to in the current tax year, then it’s treated differently.

This money is not counted as income for you. The normal tax rules that would usually apply to this kind of money don’t apply in this case.

These special rules come from older tax laws. They include the Tax Administration Act 1994, the Income Tax Act 1976, the Income Tax Act 1994, the Income Tax Act 2004, and the Income Tax Amendment Act (No 5) 1988.

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Next up: HZ 2: Trusts that may become complying trusts

or “How some older trusts can become compliant with tax rules”
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Part H Taxation of certain entities
Terminating provisions

HZ 1Distributions from trusts of pre-1989 tax reserves

  1. This section applies if, and to the extent to which, a distribution is received from a trust that is not a unit trust, a group investment fund, or a superannuation scheme, when the distribution—

  2. consists of an amount of income or a capital gain derived by the trustee in the 1987–88 or earlier tax year; and
    1. is not also beneficiary income to which an entitlement exists in the tax year.

      1. The distribution is not income, and the provisions of this Act and the Tax Administration Act 1994 that correspond to the provisions of the Income Tax Act 1976, the Income Tax Act 1994, the Income Tax Act 2004, and the Income Tax Amendment Act (No 5) 1988 specified in the proviso to section 9 of the Act last referred to, do not apply.

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