Section EE 5 — Income Tax Act 2007: Ownership of lessee’s improvements: other person

EE 5 Ownership of lessee’s improvements: other person When this section applies: first case (1) This section applies when— (a) a lessee of land incurs expenditure during the term of the lease in erecting a fixture on the land or making an improvement to the land; and (b) the lessee has been allowed a deduction for an amount of depreciation loss for the fixture or improvement; and (c) the lessee disposes of their interest in the lease to another person; and (d) the other person pays the lessee for the fixture or improvement. When this section applies: second case (2) This section also applies when— (a) a lessee of land has been allowed a deduction for an amount of depreciation loss for a fixture on the land, or an improvement to the land, that a previous lessee erected or made; and (b) the lessee disposes of their interest in the lease to another person; and (c) the other person pays the lessee for the fixture or improvement. Other person treated as owner (3) The other person is treated as owning the fixture or improvement from the time at which they pay the lessee for it. Defined in this Act: amount , deduction , depreciation loss , dispose , improvement , lease , lessee , own , pay , term of the lease , Compare: 2004 No 35 s EE 5