Section EX 61 — Income Tax Act 2007: Top-up FIF income: 1 April 1993 uplift interests

EX 61 Top-up FIF income: 1 April 1993 uplift interests When this section applies (1) This section applies at any time if a person— (a) has an attributing interest in a FIF for a period; and (b) held the interest on 2 July 1992; and (c) calculated their FIF income from the interest in the period starting on 1 April 1993 under the comparative value method or the deemed rate of return method; and (d) was treated as having reacquired the interest on 1 April 1993 for an uplifted cost under section CG 23(1)(d) of the Income Tax Act 1994 or EZ 7 of the Income Tax Act 2004; and (e) derives in the period, from holding or disposing of the interest, an amount that would have been income if section EX 59(2) had not applied. Formula (2) The gain is FIF income to the extent to which the amount calculated using the following formula is positive: total income gains − total FIF income. Definition of items in formula (3) In the formula,— (a) total income gains is the total of amounts, including the amount in question, that the person derived until that time from holding or disposing of the interest that would have been income if section EX 59(2) had not applied: (b) total FIF income is the total of FIF income, reduced by the total of any FIF losses, that the person derived from the interest until, and including, the relevant period. Consequence of partial sales (4) If the person disposes of part of the interest, this section applies to the part disposed of and the part retained as if they were separate interests. If this means that an apportionment is necessary, it must be done on the basis of the respective market values at the time the part interest is disposed of. Defined in this Act: amount , attributing interest , comparative value method , deemed rate of return method , FIF , FIF income , FIF loss , income , market value , Compare: 2004 No 35 s EX 49