From 1st October 2015 the Land Registry will be collecting information on certain land transactions (including a sale and purchase) and will pass this information onto the Inland Revenue.
The IRD will then apply a “bright-line” test, which may result in a Vendor being taxed on any profits gained from a sale.
For all contracts entered into on or after 1st October 2015, buyers and purchasers of property will be required to provide certain tax information to the Solicitor acting for them on the property transaction and in most cases an IRD number will be needed.
There are some exemptions but none for Trusts , which must have an IRD Number and none for an “Offshore” Purchaser, who will also need an IRD number as well as to meet other criteria.
For more details on how this will affect you or your Trust, see the following links:
- Link to article on Trust web page Important New Law Changes Affecting Family Trusts
- Link to article on Property web page New Property Tax Compliance Requirements