Treasury suggested the Government extend the bright-line test – an effective capital gains tax on residential property – to 20 years, instead of the 10 the Government has gone with, and pushed back against an exemption for new builds. “Treasury has not formed a view on whether a 10-year bright-line test is preferable to the status quo,” the document said. Unfortunately, without stripping investors from owenr occupiers, those numbers don’t help much with working out how many people will be hit by the bright line test extension. Treasury was less scathing than IRD which recommended against both the extension of the bright line test and axing interest deductions. IRD thought an exemption a good idea as it would continue to encourage the construction industry to add to housing supply.

Source: Stuff March 23, 2021 00:35 UTC