increase font size
Bindi Norwell, chief executive at REINZ.
A significant number of lifestyle block owners may have to pay a capital gains tax on their family home, warns the Real Estate Institute of NZ.
Under the Tax Working Group’s proposal, which may come into effect after 1 April 2021, land that is larger than 4,500m2 is not subject to the family home Capital Gains Tax (CGT) exemption.
“Indicating the potential size of the problem, in the last 12 months, REINZ data has shown that 92% of lifestyle blocks sold across the country were larger than 4,500m2,” says Bindi Norwell, chief executive at REINZ.
“If this is indicative of a normal year’s sales, then going forward, a similar portion of the market is likely to have to pay CGT on the portion of their land that is greater than 4,500m2.”
Norwell says it’s a case of “the devil being in the detail” of the report. She says REINZ doesn’t believe many members of the community are aware of the impact the CGT could have on their lifestyle block home.
“Should the recommendations make it past the 2020 election, what this means is that we could see a significant number of lifestyle blocks coming up for sale in the next few years as people look to avoid having to pay CGT on their property,” says Norwell.
“We have repeatedly said that any changes in legislation should avoid being too punitive on one sector of the market, and we will certainly be making a submission to this effect on behalf of those living on lifestyle blocks.”
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
A tax advisory specialist is hailing a 20% tax deduction to spur business asset purchases as a golden opportunity for agribusiness.
On the same day that the protesters against David Seymour’s Treaty Principles Bill marched on Parliament in Wellington, on the other side of the world, UK farmers were also marching on London.
Farm sales are on the rise. According to recent data from the Real Estate Institute of New Zealand (REINZ), there was an 18.9% increase in farm sales for the three months ending August 2024 compared to the same period in 2023.
It could be that buyers are hunting out the right farm to purchase as farm sales drop for the three months ended December 2023. That’s according to the Real Estate Institute of New Zealand (REINZ).
For more than 50 years, Waireka Research Station at New Plymouth has been a hub for globally important trials of fungicides, insecticides and herbicides, carried out on 16ha of orderly flat plots hedged for protection against the strong winds that sweep in from New Zealand’s west coast.
There's a special sort of energy at the East Coast Farming Expo, especially when it comes to youth.
OPINION: The latest reforms of local government should come as no surprise.
The avocado industry is facing an extremely challenging season with all parts of the supply chain, especially growers, being warned to prepare for any eventuality.
Rural recycling scheme Agrecovery is welcoming the Government's approval of regulations for a nationwide rural recycling scheme for agrichemicals and farm plastics.
Despite a late and unfavourable start, this year’s strawberry crop is expected to be bountiful for producer and consumer alike.
OPINION: Your old mate welcomes the proposed changes to local government but notes it drew responses that ranged from the reasonable…
OPINION: A press release from the oxygen thieves running the hot air symposium on climate change, known as COP30, grabbed your…
