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Articles by Matthew Gilligan

BRIGHT-LINE ANNOUNCEMENT

AUTHOR: Matthew Gilligan

POSTED: 20 December 2023

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Today (20 December 2023) the coalition government announced that the bright-line test will be reduced to two years from 1 July 2024.

This is what Nicola Willis had to say:
"Today I am announcing our immediate decision to bring the brightline test for residential property back to two years, effective from 1 July 2024. Removing this effective capital gains tax means that properties sold after 1 July 2024 will only be subject to the rule if owned for less than two years."

At GRA we are very pleased, not only with the reduction of bright-line timeframe, but also that the government have followed through and done what they said they would.

A two-year timeframe is fairer for genuine investors, while still capturing those who are really traders but who would have liked to pose as ‘long-term investors’ in order to avoid paying tax on the capital gains they make.

We expect the definition of “sale” will likely be a binding contract, but we need to wait for the detail to be confirmed. We will keep you posted as the details come to light.

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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

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I would like to express my sincere thanks to yourself and the team at GRA / Cornwall Trustees for the services you recently provided to my Trust. You were both professional and expedient in organising for Skeates Law and yourselves to execute the conveyancing of my property into the Trust to allow the title to reflect the correct Trustee names at LINZ and on the local council rating system in time for my advertising the sale of this property. I am sure that you have a team supporting you that allows you to make quick decisions and for these decisions to be executed with accuracy and pace that provided such an excellent service to my Trust. This also reminds me of an old L.V Martin television advert where their motto was "it’s the putting right that counts" and you certainly did do this in my case. In return you have a very satisfied client who wishes to convey their appreciation of their experience. Kind regards - Pravin

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Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.