(1)  Principal residence land is land on which the principal residence of an owner of at least a 50% interest in the land or a related person of such an owner is situated.

(2)  The Commissioner is to determine that adjoining land is principal residence land if satisfied that –

(a) the land is on a separate title held by the owner of the principal residence land; and

(ab) there is no dwelling on the land that is used as a place of residence; and

(b) the land is used by that owner solely in conjunction with the principal residence land; and

(c) the owner does not receive any income from the use of that land; and

(d) the owner of at least a 50% interest in the principal residence land is also the owner of at least a 50% interest in the adjoining land.

(3)  The Commissioner, on application by a trustee of a trust, is to determine that land is principal residence land for a financial year if –

(a) the land is held by –

(i) a registered trustee company; or

(ii) an executor, administrator, guardian, committee, receiver or liquidator; or

(iia) the trustee of a special disability trust; or

(iii) a trustee appointed by a court; or

(iv) the trustee of a fixed trust in which all of the beneficiaries are individually named or are descendants of individually named beneficiaries; and

(b) the principal residence of a beneficiary of the trust is situated on the land as at 1 July in that financial year; and

(c) the Commissioner is satisfied that the beneficiary does not own any other principal residence land.

(3A)  For the purposes of subsection (3)(b) , a person is taken to be a beneficiary of a fixed trust referred to in subsection (3)(a)(iv) only if the person would be entitled, on the winding up of the trust, to 50% or more of the value of the income and capital of the trust.

(4)  The Commissioner, on application by a company, is to determine that land is principal residence land for a financial year, if –

(a) the land is beneficially owned by the company; and

(b) the principal residence of a person who owns 50% or more of shares in the company is situated on the land as at 1 July in that financial year; and

(c) the Commissioner is satisfied that the person does not own any other principal residence land; and

(d) the Commissioner is satisfied that the person, by reason of his or her ownership of 50% or more shares in another company, does not have another principal residence situated on other land which –

(i) is beneficially owned by that other company; and

(ii) has been determined under this subsection to be principal residence land.

(5)  The Commissioner is to determine that land owned by a home-unit company is principal residence land if any flat on that land is the principal residence of a person owning shares in the home-unit company.

(6)  .  .  .  .  .  .  .  .  

(7)  The Commissioner is to determine that a part of land owned by a cooperative housing society is principal residence land if that part is used for residential purposes.

(8)  If a person occupies residential premises in a retirement village as his or her principal place of residence, any other land owned by the person is not that person's principal place of residence.

(9)  Subsections (10) and (11) apply in relation to land in relation to a financial year only if, but for those subsections, the land would not, under this section, be principal residence land in relation to that financial year.

(10)  This subsection and subsection (11) apply to land in relation to a financial year (in this section referred to as the relevant financial year ) beginning on 1 July of that year (the assessment day ) if –

(a) at 1 July in the previous financial year (in this section referred to as the critical date ), land is principal residence land under subsection (1) ; and

(b) the person who –

(i) was the sole owner of the land on the critical date; or

(ii) is a person who the Commissioner determines is to be taken to be the sole owner of the land on the critical date –

dies on or after the critical date and before the assessment day; and

(c) the principal residence of that person was, on the critical date, situated on the land; and

(d) the land is not, after the critical date and before the assessment day –

(i) sold in whole or in part; or

(ii) transferred, in whole or in part, other than to the personal representative of the deceased person.

(11)  If subsection (10) applies to land in relation to a relevant financial year –

(a) the land is taken to be, on the assessment day, principal residence land; and

(b) section 26 does not apply in relation to the land for the relevant financial year.

(12)  If –

(a) subsection (10) applies to land in relation to a relevant financial year; and

(b) another area of land was, at the critical date, adjoining land under subsection (2) in relation to the land referred to in paragraph (a) ; and

(c) the adjoining land satisfies, on the assessment day, the requirements of subsection (2)(a) , (ab) and (d) ; and

(d) no income is derived from the adjoining land after the critical date and before the assessment day; and

(e) the adjoining land is not, after the critical date and before the assessment day –

(i) sold in whole or in part; or

(ii) transferred, in whole or in part, other than to the personal representative of the deceased person –

the adjoining land is taken to be, on the assessment day, principal residence land and section 26 does not apply in relation to the adjoining land for the relevant financial year.