When you are working out tax, this section is important for section EC 41. You use this section when bloodstock is transferred because of a relationship property settlement. If the person giving you the bloodstock used it for breeding in New Zealand, you treat it as if they did not. When you value the bloodstock, you do not consider its past use for breeding in New Zealand. This affects how much tax reduction you can get for the animal's value. You calculate the reduction as if the bloodstock was never used for breeding in New Zealand.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516363.

This page was last updated on 29 January 2026 — View changes

Topics:

Money and consumer rights > TaxesFamily and relationships > Marriage and partnerships

FB 17: High-priced livestock, or

"Tax rules for transferring expensive farm animals during a relationship split"

FB 19: Leased assets, or

"Tax rules for things you lease, like cars or machines"

Part FRecharacterisation of certain transactions
Transfers of relationship property

FB 18Bloodstock

This section applies for the purposes of section EC 41 (Reduction: bloodstock not previously used for breeding in New Zealand) when bloodstock is transferred on a settlement of relationship property.
If the bloodstock has been used for breeding purposes in New Zealand by the transferor, then for valuation purposes by the transferee and the amount of reduction applying to the value of an animal, the bloodstock is treated as not having been used for breeding purposes in New Zealand by the transferor.

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2004 No 35 s FF 12