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IS 22/03
Issued
14 Jun 2022

Income tax – Application of the land sale rules to co-ownership changes and changes of trustees

This interpretation statement considers whether the land sale rules in the Income Tax Act 2007 apply to changes to co-ownership of land and changes of trustees of a trust.

It is accompanied by a fact sheet:

IS 22/03 FS: The land sale rules and changes to co-ownership

Income Tax Act 2007: Subpart CB (income from business or trade-like activities), ss CB 6A to CB 15, CB 23B, CZ 39, FC 2, GC 1, and the definitions in s YA 1 of “estate or interest in land”, “dispose”, “disposition of property”, “land” and “trustee”
Interpretation Act 1999: Sections 5 and 32
Property Law Act 2007: Sections 8 and 56, and the definition of “disposition” s 4
Joint Family Homes Act 1964
Land and Income Assessment Act 1900, s 59(3)
Land and Income Tax Act 1916, s 85(c)
Land and Income Tax Act 1954, s 88(1)(c)
Land and Income Tax Amendment Act 1951, s 10
Land and Income Tax Amendment Act 1973
Taxation (Bright-line Test for Residential Land) Act 2015
Taxation (Annual Rates for 2017-18, Employment and Investment Income, and Remedial Matters) Act 2018
Taxation (Annual Rates for 2020-21, Feasibility Expenditure, and Remedial Matters) Act 2021

Dewhurst v Conning (FC Waitakere FAM-2006-090-002333, 4 September 2008)
Duke of Northumberland v A-G [1905] AC 406 (HL)
Equity Trustees Executors & Agency Co Ltd v Commr of Probate Duties (1976) 135 CLR 268 (HCA)
FCT v Cooling (1990) 90 ATC 4,472 (FCAFC)
FCT v Wade (1951) 84 CLR 105 (HCA)
Griffiths v Ellis [1958] NZLR 840 (SC)
Henty House Pty Ltd (in vol liq) v FCT (1953) 88 CLR 141 (HCA)
Junior Farms Ltd v CIR (2011) 25 NZTC 20-064 (HC)
Rose v FCT (1951) 84 CLR 118 (HCA)
Sharkey (Inspector of Taxes) v Wernher [1956] AC 58 (HL)