Property Taxation – New Registration Requirements, Oct 2015
The Government has recently passed new legislation that from 1 October 2015 all persons selling or purchasing residential land are required to complete a tax statement as part of the transaction.
The statement will include the persons IRD number and in certain circumstances further information. There are some transactions which will be exempt, principally those which are transferring or acquiring a residential property that was used or is to be used as that persons main home.
The Legislation is called the Taxation (Land Information and Offshore Persons Information) Act 2015.
The most important change is that no transfer can be signed off and registered until the tax statement is completed. This requirement relates to all agreements that were entered into from 1 October 2015 onwards. It does not apply to any agreements signed before 1 October 2015 provided registration of the transaction is completed by 1 April 2016.
The one transaction where the requirement to have an IRD number has change for a residential sale or purchase is that involving a family trust. To be able to complete either a sale or a purchase on behalf of a trust where the agreement was entered into after 1 October 2015 the trust will need to have an IRD number. All trustees will be required to sign a tax statement.
If your trust is planning to sell or purchase a residential property and does not have an IRD number, we recommend you apply immediately for a trust IRD number.
If you would like more information on the new registration requirements, please contact either John Stirling or Mike Newdick.
“John is very easy to talk to, he never makes you feel dumb, and never makes you feel like you are wasting his time for asking questions. He explains everything very clearly, every time. John's support staff are also very efficient and so easy to deal with. No detail is missed when dealing with them. My husband and I are fans of them all :)”
“To Michael Robinson – I wanted to thank you and your colleagues for many years of excellent service to the Bank. You have an outstanding business that has proved to be one of the most reliable and ethical businesses that Collections have dealt with in the almost 9 years I was with the Bank.”
“I have struggled with different legal firms over the years, but over the past few years I have engaged with Turner Hopkins with various requirements from personal relating to wills, family trust, property settlements and contracts through to commercial engagements including employment advice, commercial lease agreements and general legal advice. I have engaged with a number of the people in the firm and always found them professional, punctual in their responses and very sound in the advice provided.”
“I can't speak highly enough of Jenny. She got everything done in a timely manner and when my ex-husband threw a spanner in the works at the eleventh hour she got the required documentation to his lawyers and settlement back on track.”
“Joy, we cannot thank you enough for your help with our purchase! You have been wonderful to deal with and so proactive (and patient with my numerous emails). We will be visiting NZ in April so will make sure we drop in to thank you in person.”