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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
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DT: New Zealand: double taxation agreement, Article 14: Alienation of property

 

Substitute paragraphs (1) and (4) and a new paragraph (5) of Article 14 were introduced by SI 2004/1274. They have effect from 4 November 2003. The old paragraphs are shown at the end of the new consolidated Article.

(1) Income or gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 7 of this Convention and situated in the other Contracting State, or from the alienation of shares in a company deriving their value orthe greater part of their value directly or indirectly from such property, may be taxed in that other State.

(2) Income or gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such income or gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

(3) Income or gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.

(4) Income or gains from the alienation of any property other than that referred to in paragraphs (1), (2) and (3) of this Article, shall be taxable only in the Contracting State of which the alienator is a resident.

(5) The provisions of this Article shall not affect the right of the United Kingdom to levy according to its law a tax chargeable in respect of gains from the alienation of any property on a person who is a resident of the United Kingdom at any time during the fiscal year in which the property is alienated, or has been so resident at any time during the six fiscal years immediately preceding that year. ”The replaced paragraphs were as follows:

(1) Income or gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 7 and situated in the other Contracting State or from the alienation of shares in a company the assets of which consist wholly or principally of such property may be taxed in that other State.

(4) Income or gains from the alienation of any property other than that referred to in paragraphs (1), (2) and (3) of this Article, shall be taxable in the Contracting State of which the alienator is a resident.