Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Income from business or trade-like activities - Exclusions for business premises

CB 20: Business exclusion from sections CB 12 and CB 13

You could also call this:

“Exclusion for businesses improving their own land”

This part of the law talks about when you don’t have to follow sections CB 12 and CB 13. These sections don’t apply if you’re doing work to create or make changes to land, and you’re doing it for your own business that you run on that land. However, your business can’t be about creating or changing land. This means if you’re improving your land to use it for your business, you don’t have to worry about those other sections of the law.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512455.

Topics:
Money and consumer rights > Taxes
Previous

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

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

Next

CB 21: Farm land exclusion from sections CB 12 and CB 13, or

“ Farm land sales: when you don't have to pay tax on profits ”

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

CB 20Business exclusion from sections CB 12 and CB 13

  1. Sections CB 12 and CB 13 do not apply if—

  2. the work involved in the undertaking or scheme is to create or effect a development, division, or improvement; and
    1. the development, division, or improvement is for use in, and for the purposes of, the carrying on of a business by the person on the land; and
      1. the business does not consist of the undertaking or scheme.

        Compare
        Notes
        • Section CB 20: amended, on , by section 311(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section CB 20 heading: amended, on , by section 311(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).