DB 27 Amount from major development or division and not already in income
When this section applies

(1)

This section applies when a person derives income under section CB 13 (Disposal: amount from major development or division and not already in income) that is not their income under any other provision of this Act.

Deduction

(2)

The person is allowed a deduction for the value of the land, as determined under subsection (3).

Determining amount of deduction

(3)

For the purpose of determining the amount of the deduction, the person is treated as—

(a)

having disposed of the land to an unrelated third party immediately before the start of the undertaking or scheme; and

(b)

having reacquired it immediately after the start of the undertaking or scheme at the market value of the land at the time.

Link with subpart DA

(4)

This section supplements the general permission. The general limitations still apply.

Defined in this Act: amount, deduction, general limitation, general permission, income, land, supplement

Compare: 2004 No 35 s DB 20