It was a quiet week post Election, with little coming across my desk that I thought would interest you all.
Questions have already started, however, regarding the proposed change to the residential bright-line rules, more specifically, the reduction in the bright-line period from 10 years to 2 years – as it was when the National government first introduced the bright-line rules with effect from 1st October 2015.
While it’s likely to be a few weeks before we see anything in the nature of the draft of the proposed legislation to effect the promised amendments, my present understanding is that the new two-year period will apply to residential land acquired post 1st July 2024. However equally, if the residential land being disposed of was acquired pre 1st July 2022, then the disposal will also not be subject to bright-line taxation.
