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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news