Ring Fencing Rental Losses

On 29 March 2018, Inland Revenue released the officials’ 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 the 2020 income tax year.

·         Rules may be applied from the outset or phased in over two or three years.