Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
LE 3: Use of remaining credits by others
or “Carrying forward unused tax credits to the next year”
You could also call this:

“Special tax rules for trustees managing income for young beneficiaries”

When you’re a trustee of a trust and you have a tax credit under [section LE 1], this rule applies if the trust has a minor who gets income from it. The minor’s income is called beneficiary income.

If [section HC 7(2)] applies, you’re treated as if you’re getting the minor’s beneficiary income yourself. This means you’re seen as the beneficiary instead of the trustee for this income.

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 It might be out of date or be missing some parts.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: LE 4B: Trustees for certain close companies

or “How trustees' tax credits are treated when close companies receive trust income”
Next

Part L Tax credits and other credits
Tax credits for imputation credits

LE 4Trustees for minor beneficiaries

  1. This section applies when a person who has a tax credit under section LE 1 is the trustee of a trust for a minor who derives beneficiary income from the trust.

  2. To the extent to which section HC 7(2) (Trustee income) applies, the person is treated as deriving the minor’s beneficiary income as a beneficiary.

Compare