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HZ 7: Saving of binding rulings relating to settlements on trusts
or “Keeping certain tax rulings about trust settlements valid despite law changes”
You could also call this:

“Rules for calculating extra tax due to changes in market valuation laws”

This law applies to you if section HB 4 affected you before the 2017-18 income year. It helps figure out if you need to pay more tax for that year.

You need to do a simple math problem to work out if you owe more tax. You subtract the ‘current amount’ from the ‘retrospective amount’.

The ‘retrospective amount’ is how much income you would have if section HB 4 had always worked the way it does now. This looks at money you owed in the past.

The ‘current amount’ is how much income you had under the old version of section HB 4. This also looks at money you owed in the past.

If the ‘retrospective amount’ is bigger than the ‘current amount’, you might need to pay tax on the difference. This is to make sure everyone is treated fairly under the new rules.

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Next up: HZ 9: Elections to treat existing debt funding special purpose vehicles as transparent

or “Choosing to make existing debt funding vehicles tax-transparent”
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Part H Taxation of certain entities
Terminating provisions

HZ 8Retrospective transitional provision for market valuation under section HB 4

  1. This section applies for the 2017–18 income year if section HB 4 (General provisions relating to disposals) has applied for a person before the start of the 2017–18 income year.

  2. The person has an amount of income for the 2017–18 income year calculated using the formula—

    retrospective amount – current amount.

    Where:

    • In the formula,—

    • retrospective amount is the amount of income, for the person’s owner’s interest in financial arrangements as debtor, that would result from the application of section HB 4 for income years before the 2017–18 income year, treating that section as amended, for the purposes of this definition, as provided by section 130 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 for those income years:
      1. current amount is the amount of income, for the person’s owner’s interest in financial arrangements as debtor from the application of section HB 4, for income years before the 2017–18 income year.

        Notes
        • Section HZ 8: inserted, on , by section 146 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).