CB 15EDisposals of land subject to section CW 3C

1. This section applies to a person for a disposal of land acquired from a co-owner on a partition or subdivision if—

2. the person derives income from the disposal under section CB 15(1); and
3. had the person disposed of their interest in the land that was partitioned or subdivided immediately before the partition or subdivision, section CB 15(1) would not have applied to the disposal.

4. The amount of income the person derives under section CB 15(1) from disposing of the land is exempt income if the person’s end value proportion under section CW 3C (Certain partitions or subdivisions of land) is no more than 105% of their acquisition proportion under section CW 3C.

5. If subsection (2) does not apply, the amount of income the person derives under section CB 15(1) from disposing of the land is exempt income to the extent given by the formula—

   $amount\; derived\; x\; (acquisition\; proportion\; ÷\; end\; value\; proportion).$

   Where:

6. The items in the formula are defined in subsections (5) to (7).

7. Amount derived is the amount the person derives from disposing of the land.

8. Acquisition proportion is the person’s acquisition proportion as described in section CW 3C.

9. End value proportion is the person’s end value proportion as described in section CW 3C.

10. If subsection (2) or (3) applies to prevent an amount from being income of a person who is a member of a wholly-owned group of companies or a consolidated group, the amount is not income of the person under section CV 1 or CV 2 (which apply to group companies and consolidated groups).