FP 3Definitions for the purposes of subpart FP

1. In subpart FP, —

   affected class means 1 of the following classes of the person’s depreciable property that the affected depreciable property is included in:

   1. buildings:
   2. commercial fit-out not referred to in paragraph (c):
   3. commercial fit-out for which the person uses the pool method:
   4. depreciable property for which the person uses the pool method, other than commercial fit-out:
   5. depreciable property not referred to in paragraphs (a) to (d)

   affected depreciable property means depreciable property that—

   1. is not depreciable intangible property; and
   2. is included in an affected class; and
   3. as a result of an emergency event, is affected by—
      1. damage that meets the requirements of section EE 47(4) (Events for purposes of section EE 44); or
      2. a disposal and reacquisition under section FP 14

   affected depreciation loss means, for an affected class,—

   1. the total amount of depreciation loss under section EE 48(2) (Effect of disposal or event), treated as a positive amount, that the person has for all items of affected depreciable property in the affected class for which the compensation received for the item is less than the adjusted tax value of that item; or
   2. in any other case, zero

   affected depreciation recovery income means, for an affected class, the total amount of depreciation recovery income the person would have, in the absence of this subpart, from the compensation received for each item of affected depreciable property in the affected class under section EE 48(1)

   affected improvement to land means an improvement to land subject to section DO 4 or DO 5 (which relate to improvements to farmland and expenditure on horticultural plants) that has been damaged or destroyed in an emergency event

   affected property means—

   1. affected depreciable property:
   2. affected improvements to land:
   3. affected revenue property

   affected revenue property means a person’s land or building that is—

   1. revenue account property under section CB 6, CB 7, CB 12, or CB 13 (which relate to income from certain disposals of land); and
   2. damaged by an emergency event; and
   3. useless for the purposes of deriving income as a result of that event; and
   4. if it is a building, required to be demolished or abandoned for later demolition due to the damage to the land, building, or the neighbourhood of the building

   compensation means—

   1. insurance or another amount in recognition of loss:
   2. for affected revenue property, an amount that a person derives from insurance, a government or local authority buy-out, or other amount in recognition of loss, or a combination of these, that would be income of the person under section CB 6, CB 7, CB 12, CB 13, or CG 6 (Receipts from insurance, indemnity, or compensation for trading stock) in the absence of this subpart

   cost deductions means, for affected revenue property, the total amount of a person’s deductions under section DB 23 (Cost of revenue account property) for that property

   current year means an income year that falls within the emergency event period in relation to which a person may apply a provision in this subpart

   emergency event period means the period—

   1. beginning with the start of the income year in which the emergency event first occurs; and
   2. ending with either—
      1. the last day of the income year that is 5 income years after the income year referred to in paragraph (a); or
      2. a later date specified by the Governor-General by Order in Council made under section 6J of the Tax Administration Act 1994

   replacement cost means the amount of expenditure a person incurs to acquire replacement property

   replacement property means property that replaces affected property and is,—

   1. for affected revenue property, a building or land that is revenue account property located in New Zealand:
   2. for affected depreciable property, property—
      1. included in the same class, as described in the definition of affected class, as the affected depreciable property; and
      2. located in New Zealand:
   3. for an affected improvement to land, an improvement to farmland as described in schedule 20, part A (Expenditure on farming, horticultural, aquacultural, and forestry improvements) or a listed horticultural plant located in New Zealand

   suspended recovery income—

   1. is defined in section FP 6 for the purposes of affected revenue property:
   2. is defined in section FP 9 for the purposes of an affected class of depreciable property:
   3. is defined in section FP 12(3) for the purposes of affected improvements to land.