Capital Gains Tax Applies to Only 4 800 Sales
June 4, 2015 New Zealand Taxation
The upcoming capital gains tax is not likely to raise more than NZD 70 million per year, with property sales in Auckland being hit the hardest.
Last week the consultancy firm CoreLogic released a report on the potential effect of the upcoming regulations regarding the taxation of capital gains from the sale of property, showing that the changes will have the most significant effect in the Auckland region.
It was shown that in Auckland approximately 15 percent of the 31 000 property sales were properties which had been held for 2 years or less, while across New Zealand as a whole the percentage was only approximately 10 percent.
Further it was noted that a significant portion of the sales across the country would not qualify for the tax, as they are the seller’s primary residential property.
In total approximately 3 400 properties would have fallen under the scope of the new tax, resulting in an estimated NZD 70 million in extra tax collections.
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