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Income Tax Act 2007

Taxation of certain entities - Trusts

HC 8B: Income in income year of person’s death and following 3 income years

You could also call this:

“Tax on income after someone dies, for 4 years”

When someone dies, a trustee looks after their estate. You are a trustee if you manage someone’s estate after they die. This section applies to you for the year the person died and the next three years.

If you get income in one of those years, you pay tax. The tax rate is in schedule 1, part A, clause 6B. This tells you how much tax you pay on each dollar of taxable income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS960422.

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Part H Taxation of certain entities
Trusts

HC 8BIncome in income year of person’s death and following 3 income years

  1. This section applies to a trustee of an estate of a deceased person for the income year in which the person died and the subsequent 3 income years.

  2. For an income year in which the trustee derives income, the basic rate of income tax for the trustee on each dollar of the trustee’s taxable income is set out in schedule 1, part A, clause 6B (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits).

Notes
  • Section HC 8B: inserted, on , by section 89(1) (and see section 89(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section HC 8B heading: amended (with effect on 1 April 2024), on , by section 70(1) (and see section 70(4) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section HC 8B(2): amended (with effect on 1 April 2024), on , by section 70(2) (and see section 70(4) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section HC 8B list of defined terms income: inserted (with effect on 1 April 2024), on , by section 70(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section HC 8B list of defined terms trustee income: repealed (with effect on 1 April 2024), on , by section 70(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).