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Vanessa Williams
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Bright-line test extended to 5 years

From 29 March 2018 the bright-line test for residential property has been extended from 2 years to 5 years.

march calendar-226The extended bright-line test only applies to properties for which an agreement to purchase the property was entered into on or after 29 March 2018.

If an agreement to purchase a property was entered into before that date, the 2-year bright-line test will still apply.

The 5-year bright-line test applies in the same way as the 2-year bright-line test.

The residential land withholding tax (RLWT) rules have been extended from 2 years to 5 years as a result of extending the bright-line test. 

An offshore person will be liable for RLWT on residential land sold within five years of purchase, if the purchase date was on or after 29 March 2018.
If you have any questions about the new rules or would like to discuss your particular circumstances, please contact Alliott NZ in Auckland today on 09 520 9200.

Topics: property Property sale residential tax