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Property Investor Tax Changes – interest not tax deductible

Bright Line Test going forward properties bought will be subject to tax on the gains, inline with income tax, if sold within a 10 year period New build investment properties

Hamish Patel

Mortgages Online

30 March 2021

Bright Line Test

going forward properties bought will be subject to tax on the gains, inline with income tax, if sold within a 10 year period
New build investment properties will remain at 5 year rule
Family home and inherited property is exempt

Interest Deductibility

property investors will not be able to offset the interest expense against the rental income
Phased in for existing property owners over 4 years
Applies on property acquired after March 27th
Some details to be worked through by government
New built investment property likely to be exempt from this rule

Written by Hamish Patel

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