Resources & Updates

CAPITAL GAINS TAX


BRIGHT-LINE TEST FOR RESIDENTIAL PROPERTY

From 29 March 2018 the Government increased the “Bright-line test” for the sale of residential property that is sold within five years from purchase date. Tax will be payable on the profit on a resale provided it is not your main home, transferred as part of an inheritance, or transferred to you as an executor or administrator. It does not apply to commercial property.

From 1 October 2015 through to 29 March 2018 the Bright-line test will apply to a residential property sold within two years of purchase from that date.