It’s election year. Politicians are finding their voices and are having a lot to say about property. Labour has made no secret that it wants housing to be an election battleground, and a capital gains tax is seen as an integral part of that plan.
Labour leader David Cunliffe this week hinted at what a capital gains tax may look like. Gains on the resale of property would be taxed at 15%, would not be retrospective and, as we already know, would exclude the family home. He said the new tax was required because “speculators” were making tax fee gains and forcing up property prices.