Income Tax Act 2007 section 443

Calculation of relievable amount where joint disposal of interest in land

Section 443 explains how to calculate the amount eligible for tax relief when jointly held land is gifted to charity by its co-owners.

• When land is held jointly and gifted to charity, the relievable amount is calculated as though all the co-owners were a single person making a single disposal of the entire beneficial interest in the land.
• The deemed disposal consideration (used at the first step of the main relief calculation) is found by working out each owner's individual deemed consideration under the capital gains tax gift rules, and then adding all those figures together.
• If any of the co-owners is neither an individual nor a qualifying company, the overall relievable amount must be reduced on a just and reasonable basis to exclude the share attributable to that owner, since they are not entitled to relief.
• This approach simplifies the calculation by starting with one combined figure for all owners and then stripping out the portion relating to any owner who does not qualify for gift relief.