EL 3Definitions for this subpart

1. In this subpart,—

   land sales provisions means sections CB 6A to CB 15 and CZ 39 (which relate to amounts derived from disposals of land)

   residential income means the following amounts that a person derives for an income year in relation to residential land:

   1. rental income which is the amount of income the person derives under sections CC 1 to CC 2 (which relate to amounts derived from the use of land) for the income year in relation to their residential portfolio:
   2. income which is the amount that the person derives under section CC 3 (Financial arrangements) for the income year in relation to a loan, denominated in a foreign currency, to the extent to which that loan relates to their residential portfolio:
   3. depreciation recovery income which is the amount that the person derives under section CG 1 (Amount of depreciation recovery income) for the income year in relation to their residential portfolio:
   4. an amount of net income that the person would have for the corresponding tax year if their only income were income under the land sales provisions from a disposal of property in their residential portfolio:
   5. an amount of net income that the person would have for the corresponding tax year if their only income were income referred to in paragraphs (a), (b), and (c) in relation to residential land to which section EL 4 does not apply because it is held on revenue account and falls within the exclusion set out in section EL 10

   residential land-rich entity means—

   1. a close company, partnership, or look-through company if more than 50% of its assets by value are residential land, whether the land is owned directly or indirectly, see section EL 19:
   2. a trustee of a trust whose property includes residential rental property if more than 50% of the trust’s assets by value are residential land, whether the land is owned directly or indirectly, see section EL 19

   residential portfolio—

   1. means 1 or more residential rental properties that a person holds in a portfolio for an income year; and
   2. includes a residential rental property that the person has included in their portfolio, whether or not they retain ownership of the property, in the period that—
      1. starts at the beginning of the income year in which they first acquire a residential rental property that is included in their portfolio; and
      2. ends on the last day of the income year in which they dispose of the last of the residential rental properties included in their portfolio; and
   3. does not include a residential rental property in relation to which a person is applying the rules on a property-by-property basis under section EL 6

   residential rental property—

   1. means residential land for which a person who owns the land is allowed a deduction relating to the use or disposal of the land; and
   2. includes land that, for a time in an income year, is residential land; and
   3. does not include properties that are excluded from the application of section EL 4 by sections EL 9, EL 10, EL 11, EL 12, and EL 13.