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New Zealand law explained for everyone

Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 18: Bloodstock

You could also call this:

"Tax rules for horses given as part of a settlement"

Illustration for Income Tax Act 2007

When you are working out tax, this section is important for section EC 41. This is about bloodstock that is transferred when a relationship ends. You use this section to decide the tax. If the person giving you the bloodstock used it for breeding in New Zealand, you treat it as if they did not. This is for working out how much the bloodstock is worth and how much tax you might not have to pay. You do this when the bloodstock is given to you as part of a settlement.

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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.

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Money and consumer rights > TaxesFamily and relationships > Marriage and partnerships
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Part FRecharacterisation of certain transactions
Transfers of relationship property

FB 18Bloodstock

  1. 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.

  2. 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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