CB 13 Disposal: amount from major development or division and not already in income
Income

(1)

An amount that a person derives from disposing of land is income of the person if—

(a)

the amount is not income under any of sections CB 6A to CB 12 and CB 14; and

(b)

the amount is derived in the following circumstances:

(i)

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

(ii)

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

(iii)

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

(iv)

the development or division work involves significant expenditure on channelling, contouring, drainage, earthworks, kerbing, levelling, roading, or any other amenity, service, or work customarily undertaken or provided in major projects involving the development of land for commercial, industrial, or residential purposes.

Exclusions

(2)

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.

Relationship with section DB 27

(3)

Section DB 27 (Amount from major development or division and not already in income) deals with a deduction for the value of the land.

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

Compare: 2004 No 35 s CB 11

Section CB 13(1)(a): amended (with effect on 1 October 2015 and applying to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after that date), on 16 November 2015, by section 5(1) of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).

Section CB 13(2) heading: substituted, on 1 April 2008, by section 309 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section CB 13(2): substituted, on 1 April 2008, by section 309 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).