CB 12 Disposal: schemes for development or division begun within 10 years


An amount that a person derives from disposing of land is income of the person if the amount is derived in the following circumstances:


an undertaking or scheme, which is not necessarily in the nature of a business, is carried on; and


the undertaking or scheme involves the development of the land or the division of the land into lots; and


the person, or another person for them, carries on development or division work on or relating to the land; and


the development or division work is not minor; and


the undertaking or scheme was begun within 10 years of the date on which the person acquired the land.



Subsection (1) is overridden by the exclusions for residential land in section CB 17, for business premises in section CB 20, for farm land in section CB 21, and for investment land in section CB 23.

Defined in this Act: amount, business, dispose, income, land, year

Compare: 2004 No 35 s CB 10