IR833 Bright-line test for residential property

Under the bright-line test, a sale of residential property is taxable in certain circumstances, regardless of your intentions when you acquired it. This includes properties bought/acquired on or after 1 October 2015 which have subsequently been sold/disposed of within two years. For more information on the dates see the section “Dates for property sales subject to the bright-line test” over the page.

If the bright-line test applies to your property transaction, and none of the exclusions apply, then you will have to pay tax on any profit you’ve made on the sale or disposal of the property.