Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 10: Continuity provisions: shares and options

You could also call this:

"What happens to shares and options when relationship property is divided"

Illustration for Income Tax Act 2007

When a share or an option to buy a share is transferred as part of a settlement of relationship property, you need to consider how this affects the continuity provisions. You are treated as having bought the share or option on the same date the other person got it, and as having held it from then until it was transferred to you. This rule changes how sections YC 2 to YC 6 in the Income Tax Act 2007 apply to you, which are about voting interests and market value interests, and can be found at sections YC 2 to YC 6.

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 It might be out of date or be missing some parts.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=DLM1516347.

This page was last updated on — View changes

Topics:
Money and consumer rights > TaxesFamily and relationships > Marriage and partnershipsFamily and relationships > Children and parenting
Previous

FB 9: Financial arrangements rules, or

"Rules for financial arrangements when dividing relationship property"

Next

FB 10B: Look-through companies, or

"What happens to look-through companies when you split relationship property"

Part FRecharacterisation of certain transactions
Transfers of relationship property

FB 10Continuity provisions: shares and options

  1. This section applies to modify sections YC 2 to YC 6 (which relate to voting interests and market value interests) for the purposes of the application of the continuity provisions when a share, or option over a share, is transferred on a settlement of relationship property.

  2. The transferee is treated as having acquired the share or option on the date it was acquired by the transferor, and to have held it at all times up to the date of transfer.

Compare