The IRD has launched a campaign to target investors who have sold residential property without paying tax on the profits. The IRD is now matching tax returns with property transactions, is contacting clients who might be affected and we as tax agents are being asked to do the same.

Residential property sales are subject to the bright-line rules.  As a quick refresher, the bright-line test:

• Applies to residential property only.
• Requires tax to be paid on the gains made if a property is sold:

• • within two years of it being bought between 1 October 2015 and 28 March 2018 inclusive or
  • within five years of it being bought on or after 29 March 2018

• Has some exclusions including if the property is your main home, is inherited or you received the property as a part of a relationship settlement.

If you have sold a property, have not advised us about the sale and think you might be affected, please get in touch with us as soon as possible before the IRD contacts you.

If you have received a letter from IRD, please get in touch with us to get advice as to how to proceed.