02/09/2026
A Capital Gains Tax (CGT) will be introduced if the Government changes on November 7th. Are you aware of the gotchas in it?
Firstly, even though businesses are theoretically exempt, that is NOT the case in practice. If you're a business owner who owns the property you operate you'll be subject to CGT when you permanently sell up. This applies even when that same property is also used for residential living, because you'll pay CGT on the portion of the property used for business.
The other big gotcha is that CGT is NOT inflation adjusted. This means that many people will easily pay more in tax than the real value they've gained, meaning they'll make a loss on the property in real terms. Even if you don't make a loss you're paying tax on a much bigger portion of your 'profit' in real terms (after inflation adjustment).
So we're essentially telling NZ not to save and invest in the very businesses that NZ needs.
Authorised by M Evetts. [email protected]