Exclusions for residential land

CB 16A Main home exclusion for disposal within 2 years
Main home exclusion


Section CB 6A does not apply to a person who disposes of residential land, if the land has been used predominantly, for most of the time the person owns the land, for a dwelling that was the main home for—


the person; or


a beneficiary of a trust, if the person is a trustee of the trust and—


a principal settlor of the trust does not have a main home; or


if a principal settlor of the trust does have a main home, it is that main home which the person is disposing of.

When this section does not apply


The exclusion in subsection (1) does not apply to a person who disposes of residential land if—


the exclusion has been used by the person 2 or more times within the 2 years immediately preceding the bright-line date for the residential land:


the person has engaged in a regular pattern of acquiring and disposing of residential land.

A definition


In this section, principal settlor means, for a trust, a settlor whose settlements for the trust are the greatest or greatest equal, by market value.

Defined in this Act: beneficiary, bright-line date, dispose, dwelling, land, main home, person, principal settlor, residential land, settlement, settlor, trustee, year

Section CB 16A: 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 8(1) of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).