Frank Jasper – Chief Investment Officer, 06 March, 2019
In February the much awaited recommendation on capital gains tax was released by the Tax Working Group.
Many of you have been asking for our thoughts on this and what this might mean for your investments. I’d encourage you to remember that at this stage this is merely a recommendation, and we must now wait to see what the Government proposes.
The news about it is everywhere. A capital gains tax (CGT) for New Zealand.
The long awaited final report from the government appointed Tax Working Group has been released, proposing a raft of adjustments to the tax and benefit systems including the headlining grabbing CGT.
A broad based approach to taxing capital gains has been recommended. This involves taxing capital “income“ on pretty much everything other than gains on your Van Gogh, Ferrari collection or your castle (family home). What’s more, the tax is levied at an internationally high rate, using your marginal income tax rate rather than a discounted rate which is common practice overseas.