Legal updates

Bright-Line Test Update

Published on July 21, 2022

New Zealand has a tax system that generally does not tax capital gains. However, there are exceptions to this rule and certain types of capital gains are taxed. The Bright-Line test, which imposes tax on gains made on the sale of real estate is an example of such an exception. The Bright-Line test was introduced […]

Trustees’ Duties under Trusts Act from 2021 and New Trust Disclosures for Tax from 2022

Published on June 29, 2022

Trustees’ Duties under Trusts Act from 2021 New Trust Disclosures for Tax from 2022 Family trusts are an integral part of our New Zealand society. Trusts are set up for a multitude of reasons including to protect assets from creditors’ claims, claims by “undeserving” next of kins not provided for in wills and relationship property […]

Equal division of property after relationship of three years - is this fair?

Published on June 3, 2022

At the time of marriage most couples intend to remain together until their death. Unfortunately, recent New Zealand statistics show that in the last quarter century about one-third of first marriages have ended within 25 years of the marriage. In this country many marriages are second or even third or fourth marriages. Many couples have […]

False Statement That Induced Signing of Contract

Published on July 5, 2019

False StatementA false statement or untrue representation made by or on behalf of one party to another that induced the other party to enter into a contract or agreement is in law actionable as a "misrepresentation". A misrepresentation covers situations when one party makes claims to a party and those claims, which was found to […]

Overseas Investment Bill that Prohibits Purchase of Residential Properties by Overseas Persons

Published on June 8, 2018

The "Overseas Investment Amendment Bill" ("the Bill") was introduced to Parliament on 14 December 2017 and has gone through the first reading. The Bill proposes several changes to the Overseas Investment Act 2005 ("the Act") to restrict the number of overseas persons buying real estate in New Zealand. The Overseas Investment Amendment Act is expected […]

Damage to Reputation - Have you been Defamed?

Published on February 22, 2017

Defamation is the branch of law which protects a person from unjustified attacks. In New Zealand, defamation covers both verbal statements (libel), and written statements (slander). For a successful claim in defamation in a court of law, a claimant must prove three elements: (1) that there is a defamatory statement; (2) that it has been […]

Companies and Trusts Beware - The Far-Reaching Arms of the New RLWT

Published on September 5, 2016

The new Residential Land Withholding Tax (RLWT) came into effect in New Zealand on 1 July 2016. It has wider implications than expected. This new withholding tax was introduced by way of amendment to the Tax Administration Amendment Act 2016 and by enactment of the Taxation (Residential Land Withholding Tax) Act 2016. The RLWT was […]

New Property Tax Laws for Residential Property Sales

Published on October 23, 2015

Important statutory amendments connected with the sale and purchase of residential land and buildings in New Zealand took effect on 1 October 2015. These new disclosure and tax obligations will apply to any transaction involving the sale and purchase of residential property where the agreement is entered into from 1 October 2015. The key changes […]

Recent law changes affecting building of homes and renovation works

Published on September 7, 2015

Important statutory protection for homeowners and consumers in the area of residential building work came into force on 1 January 2015. These protection measures are the result of recent amendments to the Building Act 2004 ("the Building Act"). The changes apply to residential building work carried out by a building contractor, in particular, where the […]

Reasons for Setting up a Family Trust

Published on May 26, 2015

Trusts are generally used to protect any current and future assets from claims in different circumstances. When a family trust is established, settlor settles property into the trust, and the trustee(s) will own and manage the assets for the benefit of beneficiaries (family members you nominate). A Trust Deed will provide the rules for how […]

Important Changes for Companies

Published on May 8, 2015

There are important changes affecting companies incorporated in New Zealand that you should know about. These changes were introduced by the Companies Amendment Act 2014 ('the Act') and came into effect on 1 May 2015. Among other changes, there are new requirements for New Zealand directors and additional disclosure information relating to directors. The Changes: […]

Hope for the Best, and Prepare for the Worst – The Insolvent Liquidation of a Company

Published on February 6, 2015

Despite optimism about the economy in New Zealand some parts of the country are still dealing with the effects of the economic downturn. Many businesses took a hit. In facing the harsh and unpredictable commercial reality it is wise to hope for the best and prepare for the worst. As such it is beneficial to […]

What is a "Cross Lease Property"?

Published on February 6, 2015

Q. I own a residential property in Auckland, New Zealand. There are a total of five houses sharing the same strip of land and my house is situated at the end of the strip. I have been told that my property is what is commonly known as a "cross lease property". I wish to erect […]