property speculation tax tagged posts
November 4, 2015 New Zealand Taxation
The newly proposed “bright line test” for gains on property sales in new Zealand has taken another step to becoming a reality.
On November 3rd the second reading the Taxation (Bright-line Test for Residential Land) Bill passed its second reading in Parliament.
The rules detailed in the new Bill are aimed at ensuring that gains made from the sale of property are properly taxed, by proposing that any property sold within two years of its original purchase are subject to income tax at top marginal rate of the seller.
The rules would not apply to the sale of the primary home of the seller, or in certain predetermined cases, such as inheritance or for properties obtained through divorce.
Currently the sale of homes by property speculators and investors may escape tax liability, as regulations...Read More
Statements made by Alan Bollard indicate a possible creation of a property speculation tax.
In a statement on the 10th of September, Alan Bollard, Reserve Bank Governor stated that he would support the introduction of a property speculation tax in New Zealand. He provided no firm mechanics on any such possible system, but a brief overview of the idea was described. Levies could be imposed on owner unoccupied housing, possibly immediately or if sold within a preset time period. The idea behind such a tax would be to rein in property speculation and balance the benefits of investing in housing with equal investments in the business sector. It was made adamant that any such system would not be imposed on owner occupied housing.
Opposition to the idea has already been voiced by the Business Ro...Read More