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Income Tax Act 2007

Income - Income from business or trade-like activities

CB 15B: When land acquired

You could also call this:

"When you get land or a share in it"

Illustration for Income Tax Act 2007

You acquire land when you start having an estate or interest in it. This can be alone or with someone else. You are treated as having the land from the date you start this period. When a company is being formed, it is treated as existing from when someone enters an agreement for the company to have land. This is for the purposes of this subpart in relation to the land. The company is treated as having the land from the start. If you exercise an option to acquire land, you are treated as acquiring the land at that time. This is when you decide to use the option to get the land. You are then considered to have the land. Some other rules can override these rules for certain transactions. These rules are in subpart FB or FC. They relate to transfers of property and provide for the timing of the transaction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6187205.

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Housing and property > Buying and selling homesHousing and property > Land useMoney and consumer rights > Taxes
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CB 15: Transactions between associated persons, or

"Rules for selling or gifting land to people you're connected with"

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"Tax exemptions for local authorities and their controlled organisations"

Part CIncome
Income from business or trade-like activities

CB 15BWhen land acquired

  1. For the purposes of this subpart except sections CB 6A and CZ 39 (Disposal within 5 years: bright-line test for residential land: acquisition on or after 29 March 2018), a person acquires an estate, interest, or option that is land (the land) on the date that begins a period in which the person has an estate or interest in, or an option to acquire, the land, alone or jointly or in common with another person.

  2. If a person, on behalf of a company to be formed, enters an agreement under which the company will have land, the company is treated, for the purposes of this subpart in relation to the land, as existing from when the person enters the agreement.

  3. A person that exercises an option to acquire land and acquires the land, is treated as acquiring the land at the time when they exercise the option.

  4. Subsections (1) to (3) are overridden, for a transaction, by a provision in subpart FB or FC (which relate to transfers of property) providing for the timing of the transaction.

Notes
  • Section CB 15B: inserted (with effect on 22 November 2013 and applying for disposals of land occurring on or after that date), on , by section 7(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
  • Section CB 15B(1): amended (with effect on 27 March 2021), on , by section 9 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
  • Section CB 15B(1): amended (with effect on 1 October 2015 and applying to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after that date), on , by section 7(1) of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).
  • Section CB 15B(3) heading: replaced (with effect on 22 November 2013), on , by section 63 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
  • Section CB 15B(3): replaced (with effect on 22 November 2013), on , by section 63 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
  • Section CB 15B(3) heading: replaced (with effect on 14 May 2016), on , by section 64 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
  • Section CB 15B(3): replaced (with effect on 14 May 2016), on , by section 64 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).