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New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Interest incurred in relation to certain land

DH 1: Interest related to certain land

You could also call this:

“Rules for tax deductions on interest paid for certain types of land”

This part of the law is about stopping people from getting a tax deduction for some types of interest they pay on certain kinds of land. Even if other parts of the law say you can get a deduction, this part says you can’t in some cases.

The law explains what it covers in different sections:

Sections DH 2, DH 3, and DH 4 tell you when these rules do and don’t apply.

Section DH 5 explains important words used in this part of the law. Section DH 6 defines something called an “interposed residential property percentage”. Section DH 7 explains what “grandparented residential interest” means.

Section DH 8 says you can’t claim a tax deduction for some types of interest related to certain land.

Section DH 12 gives rules about how to value things for this part of the law.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS675437.

Topics:
Money and consumer rights > Taxes
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Part D Deductions
Interest incurred in relation to certain land

DH 1Interest related to certain land

  1. The purpose of this subpart is to deny a person a deduction for certain interest incurred in relation to certain land, despite any other provision in this Part. The provisions of this subpart override the general permission. In this subpart—

  2. sections DH 2, DH 3, and DH 4 provide rules for when this subpart does and does not apply:
    1. section DH 5 provides definitions of key terms. Section DH 6 provides a definition of interposed residential property percentage. Section DH 7 provides a definition of grandparented residential interest:
      1. section DH 8 denies deductions for certain interest incurred in relation to certain land:
        1. section DH 12 provides valuation rules.

          Notes
          • Section DH 1: inserted (with effect on 27 March 2021), on , by section 75 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).