Dear Sir/Madam,
I am seeking your clarification with regard to the matter of GST Withholding at settlement requirements. If a client, that is registered for GST and acting in furtherance of their business and to obtain a profit, purchases a property (1 Lot) that contains an existing dwelling and subsequently subdivided said 1 Lot into 2 Lots, and subsequently sells the Lot that contains the existing dwelling – does this trigger GST Withholding at said settlement?
The query is based on whether the Lot containing the existing dwelling is considered ‘new residential property’ because of the subdivision changing the interest in the Land (despite no changes to the existing dwelling)? Or whether it is considered ‘existing residential property’ by virtue of the fact that the dwelling is existing and the subdivision which changes the interest in the Land does not affect that.
Thank you in advance for your assistance.
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