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  • Cgt

    Morning!

    What is the deal with CGT in NZ? I read it was being tabled in Parliament this year or next year?

    Will it be introduced?

    On what - Residential and/or commercial property? Shares?

    Will it apply to only property and/or shares purchased after CGT is introduced?

    Or will it apply to all existing property and/or Shares we own from the date it is introduced?

    Any advice much appreciated.

    Thanks!

  • #2
    Hi GTF

    Capital Gains Tax is already on the books but is ZERO rated.

    It only needs(if I am correct) an order in council to be reactivated.

    Regards
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

    Comment


    • #3
      Problem (for the Government) is that it also must apply to Capital Losses - think the share market in 1987.

      Comment


      • #4
        Personally I dont think CGT will happen in the short term. There is an election not too far away.

        All the politicians keep saying they wont introduce CGT, but I suspect it probably will happen eventually. I think we are one of the few countries in the world without it.

        Comment


        • #5
          Well some countries (ie Ireland) are looking at removing it. Paradoxically that has cooled the housing market there considerably, no one wants to sell and have to pay tax, where they wouldn't have to in six months...
          Cheers
          David
          New to property investing? See: Best PropertyTalk Threads for New and Old Investors And/Or:Propertytalk Wiki

          Comment


          • #6
            Originally posted by muppet View Post
            Capital Gains Tax is already on the books but is ZERO rated.
            Dont think that is right. There is no CGT legislation and would be a big chuck of legislation to implement.

            If Labour gets in next time they might try to introduce it but not before the election and the question after than (if they win) is will they have enough votes.

            Comment


            • #7
              OK so the general consensus is it is more 'unlikely' than 'likely'?

              Good news!

              Comment


              • #8
                Surely the introduction of CGT be GOOD NEWS for buy and hold investors?

                I'm assuming that the introduction of CGT would dampen house prices improving rental yields thus making cashflow positive purchases for buy and hold investors more likely?

                I say bring it on!

                Comment


                • #9
                  I say bring it on too as I pay it anyway on my trading stuff,
                  but seriously perhaps it would make people think twice before selling their houses,
                  and the IRD still have the right to make you pay GST on your sales and tax if they wish, a friend of mine got caught out like that years ago, he was just trading for a bit of fun and they made him pay GST when he hadnt claimed it!!! So needless to say i registered up front when i first started as I didnt want to get caught like that too.

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