GB 53 Arrangements involving residential land: trusts
When this section applies


This section applies when—


the trustees of a trust own residential land directly or indirectly (trust residential land); and


trust residential land makes up 50% or more, by market value, of the assets of the trust; and


the trust’s trust deed changes, a decision-maker under the trust deed changes, or an arrangement under the trust changes, with a purpose or effect of defeating the intent and application of section CB 6A (Disposal within 5 years: bright-line test for residential land).

Market value disposal


The trustees are treated as disposing of the trust residential land affected by a change described in subsection (1)(c) for an amount of consideration equal to the market value of the land at the time of the change.

Defined in this Act: amount, arrangement, dispose, land, residential land, trustee

Section GB 53: inserted (with effect on 1 October 2015), on 16 November 2015, by section 18 of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).

Section GB 53(1)(c): amended, on 29 March 2018 (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), by section 111(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).