25 Aug 2015

Bright-line test will only collect investors' tax details

9:30 pm on 25 August 2015

Revenue Minister Todd McClay says the Government will only collect the IRD numbers of people buying investment properties under its new bright-line test.

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Revenue Minister Todd McClay Photo: RNZ / Alexander Robertson

The Government this week introduced its new bright-line taxation bill, which is aimed at ensuring people pay their fair share of tax on gains from residential property sales purchased and sold within two years.

Exceptions include the sale of an owner's main home, inherited property, or the transfer of property in a relationship settlement.

Mr McClay said while originally there were proposals to collect the tax information of all property buyers, Cabinet decided against it.