31 Mar 2021....If you sell a house within 10 years of purchase then you may be liable for Income Tax on the profit on the sale.
This is known as the Bright Line test introduced by the Government and curently as follows:
Purchased between 29.3.2018 and 26.3.2021 -- 5 years
Purchased after 26.3.2021 -- 10 years
Some exceptions apply.
A transfer from one entity to another (e.g. from you to the Trustees of your Family Trust or the reverse) or between family members is treated as a sale for the purpose of the Tax with some exceptions.
The purchase date is the date of registration at the Land transfer Office but the sale date is the date of signing of the sale agreement whether or not the sale agreement is unconditional at that time.
There is a main home exemption but that cannot be claimed if you have claimed it more than twice in 2 years.
This Tax does not alter existing Tax rules. In particular if you purchase a property with the intention of selling it for a profit then tax is payable even if sold after 5 or 10 years as the case may be.
Tax rules are complex and this is a brief summary of some aspects affecting sales of residential property and may have changed since this summary or have a different interpretation. Contact us for advice as to your particular situation but also consult with your accountant. In some cases the complexity will warrant referral to Tax specialist consultants.