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Service changes and updates IR offices, myIR and phone lines (SPK2IR) are unavailable until the morning of Thursday 28 October for planned system maintenance. Find out more

Resurgence Support Payment (RSP) You will not be able to apply for the RSP in myIR until the morning of Thursday 28 October. Businesses affected by the alert level increase that started on 17 August can apply in myIR from 28 October. Applications for a 4th payment round are planned to open on 29 October. Find out more

Resurgence Support Payment (RSP) The government has announced an increase to the amount and frequency of the RSP from 12 November. Find out more

If you inherit a residential property you will not pay tax on the property when you inherit it. Also, the bright-line property rule does not usually apply when you sell an inherited property.

However, if you buy another beneficiary's share in the property - the share you buy is taxable if you sell the property within the applicable bright-line period.

The bright-line property rule

Example: Paul and Mel inherit a property

Paul and Mel are each left a half-share in a residential property.

Mel sells his half-share to Paul at market value on 12 April 2019. Paul is now the only owner of the property. 

He sells this property on 15 March 2020. Because he has sold the property within 5 years of buying Mel's half-share - he will pay tax on 50% of any gain he makes on the sale.

 

Last updated: 28 Apr 2021
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