Section LZ 6 — Income Tax Act 2007: Interest on home vendor mortgages

LZ 6 Interest on home vendor mortgages When this section applies (1) This section applies when, in a tax year, a person derives interest in relation to a home vendor mortgage. Exclusions (2) This section does not apply to— (a) an absentee; or (b) a company; or (c) a public authority; or (d) a Maori authority; or (e) an unincorporated body; or (f) a trustee liable for income tax under subpart HC (Trusts) and section HZ 2 (Trusts that may become complying trusts). Tax credit (3) The person is entitled to a tax credit equal to an amount calculated using the formula— interest × 0.020. Definition of item in formula (4) In the formula, interest means the amount of interest in complete dollars that the person derives in the tax year in relation to a home vendor mortgage. Relationship to section LZ 7 (5) This section is overridden by section LZ 7 . Defined in this Act: absentee , amount , company , distribution , home vendor mortgage , income tax , interest , Maori authority , public authority , tax credit , tax year , trustee , Compare: 2004 No 35 s KE 1(1)