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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:

ird.govt.nz/brightline.

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