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Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 8: Patent applications and patent rights

You could also call this:

"Transferring patent rights in a relationship settlement"

Illustration for Income Tax Act 2007

When you transfer a patent application or patent right as part of a settlement of relationship property, it is treated as if you sold and bought it. You work out the amount of the sale and purchase by looking at what you spent on the patent application or right. This amount is found in section DB 38 or section DB 39, depending on your situation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516343.

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Part FRecharacterisation of certain transactions
Transfers of relationship property

FB 8Patent applications and patent rights

  1. This section applies for the purposes of sections CB 30 and DB 38 to DB 40 (which relate to patent applications and patent rights) when a patent application with complete specifications or a patent right is transferred on a settlement of relationship property.

  2. The transfer is treated as a disposal and acquisition for an amount that equals, as applicable,—

  3. expenditure referred to in section DB 38 (Patent rights: devising patented inventions) for which the transferor is denied a deduction; or
    1. the cost of the applications or rights referred to in section DB 39 (Patent rights acquired before 1 April 1993) for which the transferor is denied a deduction.

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