Income Tax Act 2007 section 1004

Meaning of "property investment LLP"

Section 1004 defines what constitutes a "property investment LLP" for income tax purposes and explains how that status is determined.

• A property investment LLP is a limited liability partnership whose business consists wholly or mainly of making investments in land
• The principal part of the LLP's income must be derived from those land investments
• Both conditions — the nature of the business and the source of income — must be met for the definition to apply
• Whether an LLP qualifies as a property investment LLP is assessed separately for each of the partnership's periods of account