Income Tax Act 2007

Recharacterisation of certain transactions - Distribution, transmission, and gifts of property

FC 6: Forestry assets transferred to close relatives

You could also call this:

"What happens to forestry assets when they are passed to family members after someone dies"

When someone dies, their forestry assets can be transferred to a close relative. You need to look at section FC 1(1)(a) or (b) to see if this section applies. This section is about how the transfer of forestry assets is treated. If a forestry asset is transferred, it is treated like a transfer of property when a relationship ends. This can happen in two ways: under section FB 6 for timber or the right to take timber, or under section FB 7 for land with standing timber. The type of forestry asset being transferred determines which section applies. In this section, forestry assets refer to timber, standing timber, or the right to take timber. You can find more information about this in the legislation. The rules about forestry assets are important to understand if you are transferring or receiving these assets.

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

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FC 5: Land transferred to close relatives, or

"Rules for tax on inherited land from close relatives"

FC 7: Transfer of prepaid property, or

"Rules for valuing prepaid property when transferred after someone dies"

Part FRecharacterisation of certain transactions
Distribution, transmission, and gifts of property

FC 6Forestry assets transferred to close relatives

This section applies in the circumstances described in section FC 1(1)(a) or (b) when forestry assets are transferred on a person’s death to a close relative of the person.
A transfer of a forestry asset, including any intervening transfer to an executor or administrator, is treated as a transfer of property on a settlement of relationship property—
under section FB 6 (Timber or right to take timber), when the forestry asset is timber or a right to take timber:
under section FB 7 (Land with standing timber), when the forestry asset is standing timber.

In this section, forestry assets means timber, standing timber, or a right to take timber.

Compare

2004 No 35 s FI 6

Notes

Section FC 6(2): replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 169(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).