In: Accounting

Proposed changes for residential properties

Proposed changes for residential properties acquired on or after 27 March 2021 have been announced.

We’ve summarised some of the proposed changes:

– Extending the tax exemption term from 5 to 10 years, on the sale of an income property.

– Not allowing property owners to claim interest on loans used for residential properties as an expense against their income. This would start from 1 October 2021, and then be phased in over 4 years for existing properties.

– There are some exemptions to these rules for newly built homes.

If you are worried about how these changes might affect your residential investments, don’t hesitate to contact our team at TAG Business Services.