"Bella lives just outside London. You know, she really feels more English.
"We lived there for Eyes Wide Shut, Mission Impossible and The Portrait of a Lady.
"They [Isabella and Conor] both had English accents when they were little."
Nicole also revealed her eldest child recently launched her own fashion line, a collection of t-shirts called BKC - Bella Kidman Cruise.
Rumours of a rift between mother and daughter took hold in 2015 when Nicole was noticeably absent from Bella's London wedding to IT consultant Max Parker.
Tom and Conor did not attend either, with sources saying Bella wanted to avoid media attention on her big day.
Last week, New Idea reported that Bella is now being groomed for Scientology superstardom.
The designer reportedly took up a new role in the church as an 'Auditor', which is a step towards the top of the ladder at the secretive religious organisation.
Nicole opened up about her eldest children's divisive beliefs last October, insisting it is her job to give them unconditional love regardless.
“They are able to make their own decisions. They have made choices to be Scientologists and as a mother, it’s my job to love them," she said.
Controversy follows Nicole when it comes to her shared children with Tom Cruise, who is said to have banned her from son Connor's wedding to Italian-born 'Scientology Princess' Silvia Zanchi.
WATCH this video to find out why!