You may remember in our breaking news email on 15 February 2018 we mentioned that Inland Revenue had introduced a Tax Bill to extend the bright-line period under which a disposal of residential land, other than a main residence, is subject to income tax. The Bill proposed to extend the current two year period to five years.
The Tax Bill received Royal Assent on 29 March 2018 and is now law. This means that the new five year rule will apply to any residential land where agreements to purchase were signed on or after 29 March 2018.
If you have any concerns or questions on this please give us a call.