Tax Specialsts Auckland
Chartered Accountants



Brightline test is increased from 2 to 5 years.  This applies to properties acquired on or after  29 March 2018

The 5 year rule applies  if a person acquires a “first interest “in residential land on or after 29 March 2018.

The “First Interest” means generally the date when a binding unconditional sale and purchase agreement (SPA)  is executed by both vendor and purchaser.

Consequently binding SPA’s entered into before this date but settled after this date, should only be subject to 2 year Brightline Test.

It should be noted that this is not limited to NZ Land only, it extends to “Overseas Land” as well.

Main Home Exclusion will continue to Apply. For homes owned by a Family Trust will qualify as a main home, if it is used by a Beneficiary of the Trust, provided that a Principal Settlor of a Trust does not have a different main home.