Exceptions for property transferred on death of person

FC 3 Property transferred to spouse, civil union partner, or de facto partner
When this section applies

(1)

This section applies in the circumstances described in section FC 1(1)(a) or (b) when property is transferred on a person’s death to the surviving spouse, civil union partner, or de facto partner of the deceased person. However, this section does not apply if—

(a)

the property is tax-base property; and

(b)

a person who is not a close relative of the deceased person is beneficially entitled under the will or intestacy to other property that is tax-base property.

Disposal to spouse or partner

(2)

The transfer of property to the surviving spouse, civil union partner, or de facto partner of the deceased person, including any intervening transfer to an executor or administrator, is treated as a transfer of property under a settlement of relationship property under subpart FB (Transfers of relationship property).

Relationship with subject matter

(3)

Section FC 9 overrides this section for certain transfers of residential land.

Defined in this Act: close relative, de facto partner, property, residential land, settlement of relationship property, tax-base property

Compare: 2004 No 35 s FI 4

Section FC 3(3) heading: inserted (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 13(1) of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).

Section FC 3(3): inserted (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 13(1) of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).

Section FC 3 list of defined terms property: inserted, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section FC 3 list of defined terms residential land: inserted (with effect on 1 October 2015), on 16 November 2015, by section 13(2) of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).