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HC 8: Amounts received after person’s death
or “How to handle money received after someone dies”
You could also call this:

“Tax on trust money for four years after someone dies”

This section talks about how much tax a trustee has to pay on the money earned by a trust after someone has died. It applies to the year the person died and the next three years after that.

When the trustee earns money for the trust during these years, they have to pay income tax. The amount of tax they pay is set by a special rate. You can find this rate in another part of the law called schedule 1, part A, clause 6B.

This special tax rate is used to figure out how much tax the trustee needs to pay on each dollar of the trust’s taxable income. The law calls this money “trustee income”.

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Next up: HC 9: Classifying trusts

or “How trusts are grouped when they give out money or property”
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Part H Taxation of certain entities
Trusts

HC 8BTrustee income 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 trustee 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).