The bright-line test applies if your bright-line end date for the property is within 2 years of your bright-line start date.
Bright-line start date
The table below shows various types of acquisition and the date the bright-line period starts for each.
| Type of acquisition | Date to use |
|---|---|
| Standard purchase of a property | Date the transfer of the property is registered to you with Land Information New Zealand (LINZ) (usually the settlement date) |
| Subdivided land – property you have subdivided | The original date of registration for the undivided property |
| Off the plans – property acquired relying on the completion of a land development or subdivision | Date you entered into a sale and purchase agreement |
| Change of trustee – land transferred from a trustee of a trust to another trustee of the trust | Bright-line start date for the original trustee |
| Joint tenancy converted to a tenancy in common or tenancy in common converted to a joint tenancy | To the extent the person’s share in the land is unchanged, the bright-line start date for the land before the tenancy was converted |
| Purchase where no registration happens before the sale date | Date you acquired an interest in the property |
| Freehold estate converted from a lease with a perpetual right of renewal | Date you were first granted the leasehold estate |
| Land outside New Zealand | Date the transfer of the property is registered to you under foreign laws |
Bright-line end date
The table below shows various types of disposals and the date to use for the bright-line end date.
| Type of disposal | Date to use |
|---|---|
| Standard sale of a property | Date you entered into a sale and purchase agreement |
| Gifting of property | Date the gift was made |
| Compulsory acquisition by the Crown, a local authority or a public authority | Date of compulsory acquisition |
| Mortgagee sale | Date the property is disposed of by or for the mortgagee because the mortgagor defaulted (usually the settlement date) |
| Disposals not covered above | Date you disposed of the property |
If more than 1 type of disposal applies, use the earliest date.
Last updated:
21 Jun 2024