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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 sharing company shares in a relationship split"

Illustration for Income Tax Act 2007

When a share or an option to buy a share is transferred as part of a relationship property settlement, you need to consider some special rules. You treat the person getting the share or option as if they got it on the same date the other person originally got it. They are also considered to have held it from that date until it was transferred to them, you can find more information about this in sections YC 2 to YC 6.

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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.

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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.

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