News
Bright-line Property Rule has changed
The bright-line rule changed on 29 March 2018. This rule applies to residential property only.
To make informing you easy, we’ve created a bright-line web page for people who buy, sell or transfer property. Please share this link with people who may be interested:
You can also use the information on this webpage to create content for your client communication channels, like newsletters.
What’s changed?
The revised bright-line rule applies from 29 March 2018 and requires people who sell residential property within five years of buying it to pay income tax on gains from the sale, unless:
- it’s their main home
- they inherited the property
- they received the property as a part of a relationship settlement.
Nothing else has changed.
For those who bought residential property 1 October 2015 to 28 March 2018, inclusive, the original two year bright-line rule still applies.
All existing property tax rules, for example the intention test, still apply.
Source: www.ird.govt.nz