Housing tax changes are here

The Government’s recent law changes and policy announcements include some significant tax changes – a few of which we outline below:

• For residential investment property acquired on or after 27 March 2021, a 10 year bright-line test now applies.
• No interest deductions will be available for residential rental property acquired on or after 27 March 2021 from 1 October 2021 and for already acquired properties there is a phase out of interest deductions over four years.
• The bright-line period extension is not intended to apply to “new builds” which is generally intended to cover anyone who develops a property by adding a self-contained dwelling to it or acquires a new build within a certain period of time yet to be determined. The Government will also consult on whether the proposed interest deduction restrictions should apply to new builds and who should benefit from the exemption i.e. just the original owner or subsequent owners also.

The list above is not exhaustive, and we recommend that property investors take advice on their individual circumstances.

Get in touch with our property team to find out more.