Bright-line test affects rural properties too
New rules, known as the “bright-line test”, were introduced in October 2015 to allow Inland Revenue to easily tax property investors that frequently buy and sell residential property for a profit. These new rules apply to residential property that is purchased after 1 October 2015 and sold within two years of purchase.
Residential land is defined as any land that has a residential dwelling on it, or is zoned to allow one to be built. The wide definition means a significant number of rural properties will be affected too.