The “bright line test” was introduced in 2015 in an effort to tighten the property investment rules. Originally the bright line test provided (subject to exemptions) that any gain received from the disposal of a residential property, within two years of its acquisition, was taxable. The government extended the bright line from two years to five years on the 29th March 2018.
It is important to note that the test only applies to residential land and does not include farms …