Taxation (Bright-line Test for Residential Land) Bill

  • enacted

Hon Todd McClay

Taxation (Bright-line Test for Residential Land) Bill

Government Bill

59—2

Contents

Commentary
Key
1Title
2Commencement
3Income Tax Act 2007
4New section CB 6A inserted (Disposal within 2 years: bright-line test for residential land)
CB 6ADisposal within 2 years: bright-line test for residential land
4BSection CB 13 amended (Disposal: amount from major development or division and not already in income)
4CSection CB 14 amended (Disposal: amount from land affected by change and not already in income)
5Section CB 15B amended (When land acquired)
6New section CB 16A inserted (Main home exclusion for disposal within 2 years)
CB 16AMain home exclusion for disposal within 2 years
7Section CB 23B amended (Land partially sold or sold with other land)
8New sections DB 18A and DB 18AB inserted
DB 18ARing-fenced allocations: disposal of residential land within 2 years
DB 18ABDeduction cap: disposal of residential land within 2 years to associated persons
9Section DB 29 amended (Apportionment when land acquired with other property)
10New section FB 3A inserted (Residential land)
FB 3AResidential land
10BSection FC 3 amended (Property transferred to spouse, civil union partner, or de facto partner)
10CSection FC 4 amended (Property transferred to charities or to close relatives and others)
11New section FC 9 inserted (Residential landLand transferred to executor, administrator, or beneficiary on death of person)
FC 9Residential landLand transferred to executor, administrator, or beneficiary on death of person
12Section FO 10 amended (When property passes on resident’s restricted amalgamation)
13Section FO 17 amended (Land)
14New heading and new sections GB 52 and GB 53 inserted
GB 52Arrangements involving residential land: companies’ shares
GB 53Arrangements involving residential land: trusts
15Section YA 1 amended (Definitions)
16ASection 3 of the Tax Administration Act 1994 amended (Interpretation)
16New section 43B of the Tax Administration Act 1994 inserted (Non-active trusts may be excused from filing returns)
43BNon-active trusts may be excused from filing returns
Legislative history

The Parliament of New Zealand enacts as follows: