Section GC 3B — Income Tax Act 2007: Disposals of emissions units

GC 3B Disposals of emissions units When section GC 1 applies (1) Section GC 1 applies to a disposal of an emissions unit as if the emissions unit were trading stock. Exclusions (2) Section GC 1 does not apply to a disposal of an emissions unit if the disposal is— (a) the surrender of the unit under the Climate Change Response Act 2002 : (b) the transfer of the unit to the Crown under a forest sink covenant under section 67Y of the Forests Act 1949: (c) the transfer of a forest land emissions unit— (i) from the person (the transferor ) who receives the unit from the Crown; and (ii) to a person (the transferee ) as a party to a forestry rights agreement as defined in the Forestry Rights Registration Act 1983 ; and (iii) as required by a provision of the forestry rights agreement relating to the allocation of income or emissions units between the transferor and the transferee. Defined in this Act: disposal emissions unit , , trading stock Section GC 3B: inserted (with effect on 26 September 2008), on 7 September 2010 (applying for the 2008-09 and later income years), by section 56(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).