Remedial Provisions Relating to Land
INHERITED LAND
Amendment to clarify that disposal of inherited land by ultimate beneficiary is excluded from Brightline Rules.
CHANGES IN CO-OWNERSHIP OF RESIDENTIAL LAND
Amendment to clarify that the date of acqusition for Brightline Purposes for conversions of ownership of residential land from joint tenancy to tenancy in common or vice versa runs from the date of acquisition and not from the date of conversion.
MIXED USE ASSETS – APPORTIONMENT OF INTEREST FOR DISALLOWED RESIDENTIAL PROPERTY
The proposed amendments would ensure that interest incurred by a person, including a close company, on disallowed residential property (DRP) that is a mixed use asset (MUA) is apportioned, separately from any other expenditure, under MUA rules.
PARTITIONING OF THE LAND AMONG CO-OWNERS
Proposed amendments would ensure that allocation of subdivided land among co-owners of the original undivided block of land does not constitute a disposal for the purposes of land sale provisions, provided that the value of the allocated properties under the partition aligns with the co-owner’s interest in the original undivided parcel of land including the contribution to development and subdivision costs.
Any difference would represent a change of economic ownership and actual disposal subject to tax.
October 2022
