Important tax changes when buying or selling property

POSTED BY Richard Rodden
07 October 2015

posted in Property Law | Trusts | brightline test | Tax

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As has been discussed in the media, the Government has moved to further regulate purchase of land in New Zealand by foreigners and the selling of land by anyone in the two year period after its purchase. The so called “brightline test” detailing how the two year rule will work and who it applies to are still being worked out.

However, in the meantime, from 1 October 2015, there are new requirements for everyone to have a New Zealand IRD number (and an overseas tax identification number where that is relevant). These must both be supplied to us when we are handling your conveyancing (both sales and purchases) so that we in turn can enter them into the online land information system that is used to transfer properties in New Zealand. All trusts will also need their own IRD numbers, including non-income generating passive trusts that own the main home, regardless of who is in occupation. Without that information, the transfer will not be able to proceed. So, don’t be surprised if we ask for this information along with other personally identifying information that is becoming more and more necessary under this and other legislation.

For more information see the IRD’s site here.

Image courtesy of Mark Moz.

POSTED BY Richard Rodden
07 October 2015

posted in Property LawTrustsbrightline testTax

VIEWED 5601 TIMES

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