The Government has defined what it proposes will constitute a “new build” to be exempt from a major law change that prevents residential property investors from deducting interest as an expense when paying tax.
The Government proposes a property be considered “new” for 20 years from the time its code of compliance certificate is issued.
It proposes the exemption applies to properties that received this certificate on or after March 27, 2020, and the exemption applies to both the initial purchaser of the new build and any subsequent owner within the 20-year period.
It also proposes prefabricated houses and the conversion of existing dwellings into multiples dwellings be considered "new builds".
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