Legislation concerning the taxation of certain transactions involving land is pending enactment. Parliament’s Finance and Expenditure Committee “reported back” a bill—the Taxation (Bright-line Test for Residential Land) Bill. The bill is now awaiting enactment.
The bright-line test, once enacted, will impose tax on residential land acquired on or after 1 October 2015, if the property is sold within two years of the registration date. There is an exception if the property is being used as the owner’s main home.
The bright-line test complements the new land information tax requirements for buyers and sellers of New Zealand land, enacted in September and effective from 1 October 2015. The disclosure requirements include Inland Revenue Department (IRD) numbers (and other tax details) on settlement, unless an exemption applies.
Read an October 2015 report [PDF 444 KB] prepared by the KPMG member firm in New Zealand: Bright-line property tax rule nears enactment
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