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Planning to purchase a property? - bright-line extension expected in March 2018 Planning to purchase a property? - bright-line extension expected in March 2018

On Thursday, 15 February 2018 Revenue Minister Stuart Nash announced the current 2-year bright-line rule will extend to 5 years, with the change expected to be in place by the end of March 2018. The aim of the extension is to “help dampen property speculation and make homes more affordable”.

The new 5-year rule will apply from the date on which the Tax Bill receives Royal Assent (likely to be the end of March) and will apply to any residential property purchased from this date.

This means any residential property purchased before the date of Royal Assent will remain under the current 2-year rule ('purchased' generally meaning the date on which title is transferred to the purchaser) giving a very slim window of up to 6 weeks in which to purchase a property to remain under the 2-year rule.

Contact your Hayes Knight Advisor if you would like to discuss or click here for the full media statement and more information on the Bill.

Shelley-ann Brinkley
Associate - Tax Consulting
T +64 9 414 5444
E shelley-ann.brinkley@hayesknight.co.nz

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