All Homesellers required to provide IRD number

Currently, the IRD number of the seller is not required if the property is the seller’s main home.

However, Stuart Nash announced that all homesellers including owner occupiers have to provide an IRD number when they sell their house. This will make it easier for IRD to keep track of owner-occupier speculators such as habitual renovators who live in house, do it up, sell it for a profit and move on to the next house to repeat the process again.

When the previous government introduced the bright line test (previously two years bright line rule and has now been extended to five years bright line rule) in 2015, it made it clear that owner-occupiers with a regular pattern of buying and selling residential properties had to comply with the bright line rule in certain circumstances.

However, because owner occupiers did not have to report their IRD number, it required more effort from IRD to keep track of owner occupiers who had a continuous habitual pattern of buying and selling homes.

The only sellers who would not have to provide an IRD number on land transfer sale will be those made by a local authority or under a Treaty of Waitangi settlement.

back to home (Property Guide 360 .co.nz)