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Income Tax Act 2007

Income - Excluded income - Definitions

CX 55B: Proceeds from disposal of certain shares and financial arrangements

You could also call this:

"Money from selling certain shares and investments is not always part of your income."

Illustration for Income Tax Act 2007

When you dispose of certain shares, the amount you get is not included in your income. You also do not include the amount you get from disposing of a financial arrangement in your income. However, this rule does not apply to a certain type of interest that is listed in schedule 6, which talks about prescribed rates for PIE investments and retirement scheme contributions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS32660.

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Topics:
Money and consumer rights > Taxes
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CX 55: Proceeds from disposal of investment shares, or

"Money from selling company shares is not always taxed."

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Part CIncome
Excluded income: Definitions

CX 55BProceeds from disposal of certain shares and financial arrangements

  1. An amount that a foreign PIE equivalent derives for an income year from the disposal of a share is excluded income of the foreign PIE equivalent for the income year.

  2. An amount that a foreign PIE equivalent derives for an income year from the disposal of a financial arrangement is excluded income of the foreign PIE equivalent for the income year.

  3. Subsection (2) does not apply to an amount of interest referred to in schedule 6, table 1B, row 6 (Prescribed rates: PIE investments and retirement scheme contributions).

Notes
  • Section CX 55B: inserted, on (with effect on 1 April 2012 and applying for the 2012–13 and later income years), by section 39(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).