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Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 10: Continuity provisions: shares and options

You could also call this:

“Rules for transferring company shares during relationship property settlements”

When you transfer a share or an option to buy a share as part of settling your relationship property, this law affects how the government looks at who owns and controls a company. The law says that the person who gets the share or option is treated as if they’ve owned it since the day the original owner bought it. This means they’re seen as having held it the whole time, right up until the day it was transferred. This rule changes how the government applies some other laws about company ownership. These other laws are found in sections YC 2 to YC 6 of the Income Tax Act 2007.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516347.

Topics:
Money and consumer rights > Taxes
Family and relationships > Marriage and partnerships
Business > Industry rules
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FB 9: Financial arrangements rules, or

“Rules for financial arrangements when settling relationship property”

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FB 10B: Look-through companies, or

“Rules for transferring ownership of look-through companies during relationship property settlements”

Part F Recharacterisation 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.

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