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Capital Gains Tax labelled 'unfair'

Author
Newstalk ZB,
Section
Audio,
Publish Date
Monday, 11 March 2019, 8:19a.m.
Exemptions would apply to the family home and personal goods such as art and jewellery and vintage cars. Photo / Getty Images

More than 400,000 lifestyle blocks could be affected by the proposed Capital Gains Tax.

Figures from land information released to the national party show there are 403,883 freehold properties around New Zealand that are greater than 4500 square metres.

The Tax Working Group has recommended a Capital Gains Tax on investment property, shares, farming and other businesses at the taxpayer's highest income tax rate.

Exemptions would apply to the family home and personal goods such as art and jewellery and vintage cars.

For large properties, or so-called lifestyle blocks, a CGT would only apply to the profit made on the land and assets beyond 4500sq m and the family home.

Partner at PWC and Tax Working Group member, Geof Nightingale, told Mike Hosking the family home exemption is where issues arise.

"Once you decide to exclude that you have to define it and what a family home looks like to one person looks different to another."

"The definition that the Tax Working Group has landed on was to use GST one which was the home and 4500sq m around it."

He said excluding the family home would be unfair because it isn't based on value. 

"The first text I got was from a friend who lives in the Wairarapa on 20 acres, he said 19 of mine will be taxed but none of yours will be in Auckland. So it is an unfairness."

ON AIR: Marcus Lush Nights

8p.m. - 11:59p.m.