The government is proposing to extend the bright-line test on residential property sales from the present two years to five years. The new test will apply to residential property purchased from the date on which the bill receives the Royal Assent, which is expected in March. The new legislation will also enable the Tax Working Group to factor the change into any consideration of a comprehensive capital gains tax.
2018 - what’s in store from Inland Revenue
The coming year is going to have some radical changes for people who deal with Inland Revenue. Many of these have been “in the works” for a while and are now finally coming into effect during 2018.
First up is the new accounting income method for calculating provisional tax for smaller businesses. In line with some other advisers, we suggest you should wait out the first year of the roll-out until the quirks in the system have been ironed out.
The team at Baucher Consulting have been watching the public discussion with interest. We’re not convinced it’s appropriate for all our clients.