Section FB 16 — Income Tax Act 2007: Non-specified livestock

FB 16 Non-specified livestock When subsections (2) to (4) apply (1) Subsections (2) to (4) apply for the purposes of section EC 31 (Enhanced production) in an income year when— (a) non-specified livestock is transferred on a settlement of relationship property; and (b) because of the transfer, the transferee starts to derive, or once again derives, income from non-specified livestock. Transferee not starting to derive income (2) The transferee is treated as not starting to derive, or once again deriving income from non-specified livestock. However, the transfer is taken into account in working out whether any later acquisition by the transferee of non-specified livestock means that they start to derive, or once again derive, income from non-specified livestock. When subsection (4) applies (3) Subsection (4) applies when the transferee uses the non-specified livestock in deriving income and was not, before the transfer, deriving income from non-specified livestock. Livestock being written down to standard value (4) If the year of transfer falls in the first or second year of the 3-year period referred to in section EC 31(1)(b) , the transferee must apply section EC 31(2) as if they were the transferor and the transfer had not taken place. Transferee not acquiring land for production (5) For the purposes of section EC 31(1)(a)(ii) and (iii) , if land is transferred on a settlement of relationship property, the transferee is treated as having acquired the land on the date it was acquired by the transferor. Defined in this Act: income , income year , land , non-specified livestock , settlement of relationship property , standard value , year of transfer , Compare: 2004 No 35 s FF 10