New changes from 27 March 2021 mean that you might have to pay income tax when you sell your residential property within ten years of purchase.
The change is an increase from the previous five year period and affects you if you have purchased your home on or after 27 March 2021.
There are a few exceptions to this rule, and it might be beneficial for you to consult a lawyer to understand what this means for your future plans with your property. Hayman Lawyers can help explain what the rule means and what will be in your best interest.
It is important to know that new builds are still subject to the 5-year bright-line period before it is fully legislated what a new build home entails.
If you wish to sell your home after the bright-line period ends, then you won’t be subject to the rule, and income tax will not have to be paid.
At Hayman Lawyers, we understand this rule’s complexity and will be happy to explain what it means for your property in simple legal terms. Our group of professionals offer their services in all things property law, including the sale and purchase of residential homes and commercial properties, mortgages and refinancing, subdividing your property and disputes. We offer all kinds of legal advice in Wellington and look forward to working together with you. Get in contact with us now if you would like to find out more about the new bright-line property rule!
For more information about us and our services, visit our website at https://haymanlawyers.co.nz/.