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Income Tax Act 2007

Deductions - Terminating provisions

DZ 17: Expenditure on improvements to aquacultural business before 1995–96 income year

You could also call this:

"Money spent on improving aquaculture businesses before 1995-96 can be tax deductible"

Illustration for Income Tax Act 2007

You can get a deduction for money you spent on improving your aquacultural business before the 1995-96 income year. You would have been allowed this deduction under section DO 12 if you had spent the money in the 1995-96 income year or later. The amount you can deduct is calculated using a formula. You use the formula to work out how much you can deduct. The formula is 125% times the schedule percentage times the diminished value. The schedule percentage is found in schedule 20, and the diminished value is the value of the improvement that has decreased. This rule overrides the capital limitation, but you still need to meet the general permission and other limitations. The general permission and other limitations still apply to your deduction. You can find more information about this rule and how it has changed over time by looking at the compare section.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514256.

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"Money back for pre-1995 forestry land improvements"

Part DDeductions
Terminating provisions

DZ 17Expenditure on improvements to aquacultural business before 1995–96 income year

  1. This section applies in an income year when a person incurs expenditure—

  2. before the 1995–96 income year in making an improvement for the purposes of an aquacultural business; and
    1. for which they would be allowed under section DO 12 (Improvements to aquacultural business) a deduction in the income year if the expenditure had been incurred in the 1995–96 income year or a later income year.

      1. The person is allowed a deduction in the income year of an amount calculated using the formula—

        125% × schedule percentage × diminished value.

        Where:

        • In the formula,—

        • schedule percentage is the percentage set out opposite the description of the improvement in schedule 20, parts B to F, column 2 (Expenditure on farming, horticultural, aquacultural, and forestry improvements):
          1. diminished value is the diminished value of the improvement.

            1. This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply.

            Compare