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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:

“Rules for valuing bloodstock received in relationship property settlements”

This section talks about what happens when bloodstock (which means horses used for breeding) is given to someone as part of a relationship property settlement.

If you receive bloodstock this way, even if the person who gave it to you had used it for breeding in New Zealand before, it’s treated as if it had never been used for breeding in New Zealand. This affects how much the bloodstock is worth and how much you can reduce its value.

When figuring out the value of the bloodstock and how much you can reduce that value, you need to pretend that the person who gave it to you never used it for breeding in New Zealand, even if they actually did.

This rule is part of section EC 41, which is about reducing the value of bloodstock that hasn’t been used for breeding in New Zealand before.

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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.

Topics:
Money and consumer rights > Taxes
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FB 17: High-priced livestock, or

“Rules for valuing high-priced livestock when settling relationship property”

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FB 19: Leased assets, or

“Tax rules for leased assets that were claimed as deductions”

Part F Recharacterisation 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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