Overseas Inheritance

Question

My client has received estate funds from the UK after his mother died. These funds have been taxed in the UK - do we need to declare this on his IR3 return and are these taxed in NZ?

Answer

 If the distribution is capital then it will not need to be disclosed. If the estate funds are revenue in nature then they do need to be disclosed in your clients income tax return. Any income tax paid in the UK should be able to be recognised against the income in their NZ return.