Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
FB 1: When this subpart applies
or “This section explains when the rules apply to property transfers during relationship settlements”
You could also call this:

“Explains what 'settlement of relationship property' and 'property' mean in this law”

In this part of the law, there are two important terms you need to know about.

The first term is “settlement of relationship property”. This means when two people who are in a relationship make an agreement to transfer property between them. The property can be transferred between the people in the relationship, or between people who are connected to them.

The second term is “property”. When the law talks about property, it includes something called a “look-through interest” for a “look-through company”. This is a special kind of ownership in a certain type of company.

These definitions help to explain what the law means when it uses these terms in other parts of this section.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: FB 1C: Obligations for periods before and from transfer of property

or “Tax responsibilities before and after transferring property in a relationship settlement”
Next

Part F Recharacterisation of certain transactions
Transfers of relationship property

FB 1BMeaning of settlement of relationship property and property

  1. In this subpart,—

  2. settlement of relationship property means a transaction under a relationship agreement that creates a disposal and acquisition of property between—
    1. a person who is a party to the relationship agreement or is associated with a party to the agreement:
      1. another person who is a party to the relationship agreement or is associated with a party to the agreement:
      2. property includes a look-through interest for a look-through company.

        Notes
        • Section FB 1B: inserted (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 162(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
        • Section FB 1B: replaced (with effect on 1 April 2011 and applying for income years beginning on or after that date), on , by section 163(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
        • Section FB 1B(a): replaced, on , by section 164 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).