The Government will pass a law to exempt flood and cyclone-damaged homes from the bright-line test, which imposes a capital gains tax on investment properties. Last month, Inland Revenue issued a guide to the bright-line property tax which outlined its interpretation of the law as introduced by National in 2015 and revised in 2021 by Labour.  The bright-line rule was intended to act as a capital gains tax on property investors and it excludes the family home. It was first a two-year test but has been extended to 10-years.

https://www.interest.co.nz/public-policy/123891/homeowners-who-sell-their-weather-damaged-properties-local-councils-will-not

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