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EZ 24: Meaning of new asset
or “What counts as a new asset for tax purposes”
You could also call this:

“What counts as a 'New Zealand-new asset' for tax purposes”

A New Zealand-new asset is something you own that meets certain rules. It’s not a brand new item, but it’s one you got between 16 December 1991 and 31 March 1993, or maybe a bit later if you had already agreed to buy it. You might also have had it as something to sell before, but then started using it for your business between those dates.

You need to have used this item before 1 April 1994. Also, nobody else should have used it in New Zealand before you got it, and it shouldn’t have been something that people could claim money back on for wear and tear (which is called depreciation) under the old tax rules before you got it.

This definition is important because it helps decide how much money you might be able to claim back on your taxes for this kind of asset.

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Next up: EZ 26: Meaning of qualifying capital value

or “How to work out the value of certain business assets for tax purposes”
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Part E Timing and quantifying rules
Terminating provisions: Definitions

EZ 25Meaning of New Zealand-new asset

  1. New Zealand-new asset means an item of property that a person owns to which subsections (2) to (5) apply.

  2. The item is not a new asset.

  3. The item is—

  4. acquired by the person in the period starting on 16 December 1991 and ending with the close of 31 March 1993, other than under a binding contract that they entered into before 16 December 1991; or
    1. acquired by the person in the period starting on 1 April 1993 and ending with the close of 31 March 1994, under a binding contract that they entered into in the period starting on 16 December 1991 and ending with the close of 31 March 1993; or
      1. one to which all the following apply:
        1. it was acquired by the person before 16 December 1991 as trading stock; and
          1. it was used by the person as a capital item for the first time in the period starting on 16 December 1991 and ending with the close of 31 March 1993; and
            1. it qualified for a deduction for depreciation under section 108 of the Income Tax Act 1976 in the period starting on 16 December 1991 and ending with the close of 31 March 1993.

            2. The item is used by the person before 1 April 1994.

            3. The item is—

            4. not used in New Zealand before the date on which the person acquired it; and
              1. not an item or part of an item that qualified for a deduction for depreciation under the Income Tax Act 1976 for a period before the date on which the person acquired it.

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