Residential Rental Property Acquired Before 2012 Tax Year

Grange Associates Ltd - 27 February 2012

If you acquired a residential rental property before 1 April 2011, building depreciation changes are likely to have an impact on you.  Although there will no longer be a depreciation allowance on the residential rental property itself, any separately scheduled chattels can still be depreciated at the prevailing rates.

If you did not previously schedule the chattels separately from the building itself, you cannot claim any depreciation on them from the beginning of the 2012 tax year.

Any chattels purchased on or after 1 April 2011 and scheduled separately from the building can be depreciated at the prevailing rates.

For further information on the IRD’s approach to differentiating between chattels and residential property fit-out, have a look at our article on Residential Rental Property Acquired After the Start of 2012 Tax Year.

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All information is correct at the date of article publication. Please note we provide the information as a service only. Accordingly, the contents are not intended as a substitute for specific professional advice and should not be relied upon for that purpose.   

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