New builds: 20-year exemption from tax changes

The Government has released the draft legislation outlining details of the policy limiting the deductibility of interest costs on residential property investments.

A property with a code compliance certificate on or after March 27, 2020 will be eligible to deduct interest for up to 20 years.

The exemption will apply to both the initial purchaser of the new build and any subsequent owner within the 20-year period.

Housing Minister Megan Woods says the new build exemption also applied to the build to rent sector.

“Purpose-built rentals are large residential developments designed for ongoing rental, rather than sale,” Woods says.