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Inland Revenue

Tax Policy

Appendix - Proposed wording for charging provision and main home exception

New section CB 6A (Disposal within 2 years: residential land)

CB 6A Disposal within 2 years: residential land

An amount that a person derives from disposing of residential land is income of the person, if the person enters into an agreement for the disposal of the residential land within 2 years of—

(a) the date on which the instrument to transfer the land to the person was registered; or

(b) the date on which the person entered into the agreement for their acquisition of the land, if there is no date under paragraph (a).

New section CB 6A (Main home exclusion for disposal within 2 years)

CB 16A Main home exclusion for disposal within 2 years

Section CB 6A does not apply to a person who disposes of residential land, if it has a dwelling on it that was the main home for—

(a) the person; or

(b) a beneficiary of a trust, and––

(i) the person is a trustee of the trust; and

(ii) the settlor of the trust does not own a main home; and

(iii) the settlor of the trust is not a beneficiary of another trust, the trustee of which owns the settlor’s main home.


dwelling, for the purposes of section CB 16A and the definition of residential land,—

(a) means any place used predominantly as a place of residence or abode including any appurtenances belonging to or enjoyed with the place; but

(b) does not include––

(i) a hospital:

(ii) a hotel, motel, inn, hostel, or boardinghouse:

(iii) a convalescent home, nursing home, or hospice:

(iv) a rest home or retirement village:

(v) a camping ground.

farmland means land that because of its area and nature is capable of being worked as an economic unit as a farming or agricultural business.

main home means, for a person, the 1 home—

(a) that is mainly used as a residence by the person and any member of the person’s family living with the person; and

(b) with which the person has the greatest connection.

residential land,—

 (a) means—

(i) land that has a dwelling on it; or

(ii) land for which there is an arrangement that relates to erecting a dwelling; but

(b) does not include land that is used predominantly as business premises or as farmland.