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FB 4: Land under scheme for major development or division
or “Tax rules for transferring land in development as part of relationship property”
You could also call this:

“Rules for giving away or losing land to someone who isn't family or a close friend”

This law is about what happens when someone gives land to another person who isn’t a close friend or family member. Here’s what you need to know:

If you get land from someone and then sell it, the law will treat you and the person who gave you the land as if you were close friends or family members. This means special rules might apply to the sale.

If you can’t pay back a loan that uses the land as security, and the bank takes the land and sells it, the law sees this as if you sold the land yourself.

These rules are connected to other parts of the law. You can find more information about how this works in sections FB 3 and FB 4 of the law.

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Next up: FB 6: Timber or right to take timber

or “How timber or timber rights are treated when settling relationship property”
Next

Part F Recharacterisation of certain transactions
Transfers of relationship property

FB 5Disposal of land

  1. This section applies for the purposes of sections FB 3 and FB 4 when the transferor and the transferee are not associated persons.

  2. If the transferee disposes of the land, section CB 15 (Transactions between associated persons) applies as if the transferor and the transferee were associated persons.

  3. If a mortgagee disposes of land because the transferee defaults under the mortgage, the disposal is treated as a disposal of land.

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