Residential Property Investment - Bright-line

The bright-line test for the purchase and sale of residential property has been reduced to 2 years, effective retrospectively from 1st July 2024. This means residential investment properties can be sold within two years without incurring capital gains tax. We recommend seeking advice before entering into any sale or restructuring arrangements.

Mortgage interest deductibility is 50% claimable for this 2024 tax year for non-new builds, rising to 80% in 2024/25 (commencing 1st April 2024) and 100% in 2025/26 (commencing 1st April 2025).

With the recent tax rule changes, many of you may be considering selling or restructuring debt and ownership. If so, now is the time to speak with us.

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