Capital gains tax on the cards

Investors’ concerns that a capital gains tax is likely to be introduced have been confirmed today with the release of the TWG’s final report on the reform of the tax system.

It comes as no surprise that Sir Michael Cullen’s 11 member group has recommended a capital gains tax should be applied to the sale of rental properties.

According to the TWG, this sector is undertaxed when only rental income is in the tax base.

Cullen says that all members of the TWG agreed on this, but a majority of the group also support broadening the tax to include all land and buildings, business assets, intangible property and shares.