What is the Bright-Line Property Rule?

The bright-line property rule means that people who sell a residential property might need to pay income tax on any gains.

If you purchased the property on or after 1 October 2015 the bright-line property rule may apply if you sell it

• If the property is your family/main home, you inherited the property, or if you’re the executor or administrator of a deceased estate, the bright-line rule does not apply.

• If you purchased the property prior to 1 October 2015, the bright-line rule does not apply.

For further information seek legal and financial advice and/or see the IRD website here