22 March 2021

While the government has ruled out introducing a “Capital Gains Tax” in New Zealand it is still common for every day “capital gains” to be subject to tax (Capital Gains Tax by stealth you might say).

In this podcast hosted by Tax Advisory Partners Daniel Gibbons and Ryan Watt we will go through common situations that you may find yourself in, and how these can be inadvertently taxed. We will cover:

• The Bright-line Rule – what is it and how does it apply? Can I still be taxed if my situation changes?

• Small subdivisions – if I subdivide my land can it be subject to tax?

• Council plan changes – If my land value increases because of a council to the district plan, can I be subject to tax on sale?

• The 10-year rule– If I hold my land for more than 10 years am I free from tax?

• The IRD – what do they look for and how to respond?