On 16 November 2015, the Taxation (Bright-line Test for Residential Land) Bill received Royal assent following its recent parliamentary approval. The Bill, which was introduced in August 2015, implements a new test concerning the sale and taxation of residential property in New Zealand by both residents and non-residents alike.
Under the bright-line test, gains on the sale of residential land are subject to tax if purchased and sold within two years. Residential land is defined as:
- Land th…