Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Labour says grace period 'likely' for tax on inherited home

Labour says grace period 'likely' for capital tax on deceased parent's home

By Pattrick Smellie

Sept. 4 (BusinessDesk) - The Labour Party says there will be a "grace period" on the sale of a deceased parent's home before applying capital gains tax to its sale, but exactly how long has yet to be determined.

In response to National Party claims that a deceased parent's home would have to be sold within a month of their death to avoid being caught by Labour's proposed capital gains tax, a Labour spokesperson told BusinessDesk by email "there is likely to be a grace period but details such as this will be worked out by the expert panel prior to implementation."

Labour regards the capital gains tax as central to its "economic upgrade" package of reforms because it would discourage speculative residential property investment.

While the tax would not apply to the family home, National has been seeking chinks in the policy, questioning earlier this week whether family homes owned by trusts would be affected and seizing today on comments by Labour leader David Cunliffe in a radio interview yesterday making it clear that a deceased parent's home could attract the tax when sold by its inheritors.

Cunliffe has confirmed that family homes held in trust will not be subject to capital gains tax when sold, but National's finance spokesman, Bill English, said Cunliffe had nominated a one month grace period after a parent's death before the tax would apply to such a property's sale.

"New Zealand families will be distressed to learn that Labour would force them to sell their deceased parents’ home within a month of their death or face a punitive capital gains tax," he said, claiming Cunliffe and his finance spokesman, David Parker, had given different answers on the question in different radio interviews.

“The more David Cunliffe tries to explain his complicated capital gains tax, the more he ties himself in knots and confuses New Zealanders,” said English.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news