New Residential Land Tax Rules – Family Trusts: IRD Numbers

On 1 October 2015 new Land Tax and Information rules came into force.

Under these new rules every Trust must complete a Tax Statement, which includes an IRD Number, before it can settle the sale or purchase of any real estate. This includes non-income generating family trusts that own any real estate, including the family home. If an IRD Number for the Trust is not available at settlement, interest and penalties could be imposed under the sale and purchase agreement.

We strongly recommend that if you are considering buying or selling a property through a Family Trust (or if you own any real estate in a Trust), you apply well in advance for an IRD Number for that Trust.