BEWARE THE HIDDEN CAPITAL GAINS TAX

While there is no capital gains tax (CGT) in writing, there are some laws that look like a capital gains tax, particularly on property.

Experts claim it is more accurate to say New Zealand does not have a comprehensive CGT, i.e. a tax that applies to any type of capital gain on any type of asset or financial arrangement.

However, many Kiwis will be surprised to hear that in fact not many forms of capital gain are actually left out of the tax net under existing tax laws.

Law firm Buddle Findlay says in reality not very much is outside that net.

Tax on capital gains now applies to a wide range of activities and investment types including, but not limited to: land dealers, developers and sub dividers; financial arrangements; shares in overseas companies; cryptocurrency assets and land held for short