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Income Tax Act 2007

Income - Income from business or trade-like activities - Exclusions for residential land

CB 18: Residential exclusion from section CB 14

You could also call this:

“Exemption for selling land bought for personal living to another person for the same purpose”

Section CB 14 doesn’t apply to you if you bought land for living in and then sold it to someone else who also wanted to live there. This means if you bought a property intending to use it as a home for yourself or your family, and then sold it to someone else who wanted to use it as their home, you’re not affected by that section.

When figuring out if the person who bought the land from you wanted it for living in, you need to look at the circumstances of the sale and other important details.

In this part of the law, when we talk about “residential purposes”, we mean using the land mainly as a home. This could be for you, or for you and your family if they live with you. It also includes buying land to build a house on it that you plan to live in.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512448.

Topics:
Money and consumer rights > Taxes
Housing and property > Buying and selling homes
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CB 17: Residential exclusion from sections CB 12 and CB 13, or

“Exceptions for work done on your residential land”

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CB 19: Business exclusion from sections CB 6 to CB 11, or

“Selling business premises: when tax doesn't apply”

Part C Income
Income from business or trade-like activities: Exclusions for residential land

CB 18Residential exclusion from section CB 14

  1. Section CB 14 does not apply if—

  2. the person acquired the land and used it or intended to use it for residential purposes; and
    1. they disposed of the land to another person who acquired it for residential purposes.

      1. For the purposes of subsection (1)(b), the purpose of the acquisition by the other person is ascertained from the circumstances of the disposal and other relevant matters.

      2. In this section, residential purposes—

      3. means a purpose that the person has of using the land or intending to use the land mainly as a residence for,—
        1. the person:
          1. if members of the person’s family live with them, the person and members of the person’s family living with them; and
          2. includes the purpose of erecting a dwellinghouse on the land to be occupied as such a residence.

            Compare
            Notes
            • Section CB 18(3)(a): replaced (with effect on 1 April 2008), on , by section 125(1) (and see section 125(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).