Ring fencing rental losses

On 29 March 2018 Inland Revenue released the official's issues paper on the subject of ring fencing rental losses.  These are the main proposals:

  • It will apply to residential land.
  • It will not apply to mixed use assets or land held on revenue account.
  • It may be applied on a portfolio basis.
  • To apply from the start of 2020 income tax year.
  • Rules may be applied from the outset or phased in over two or three years.