Capital gains tax expected to change

Wednesday 17 November 2004

Some investors could be hundreds of millions of dollars better off if a report due out today sees the eventual end of capital gains tax on actively managed funds.

By The Landlord

Finance Minister Michael Cullen is due to issue a report by former BT New Zeland chief executive Craig Stobo on the taxation of investment income.

Today's report is expected to be a blueprint for options to change the tax system, but is not a final decision - that may follow in next year's budget.

It is also expected to look at the tax treatment of offshore investment, with concerns that there is widespread tax evasion on offshore investments.

About $2.5 billion to $3 billion of retail funds are invested through passive funds, which do not pay capital gains tax, unlike actively managed funds worth about $12 billion. Billions in wholesale funds will be affected, but just how much is unclear.

The managed funds industry has about $40 billion under management, including unit trusts and company superannuation schemes.

Read More - Opens in a new window
Commenting is closed

Property News

Share your views on property investing

It's that time of the year where we run the NZ Property Investor's survey of investor. Take part and be in to win.

House Prices

Values pick up the pace

There’s a more upbeat feel to the property market and it’s obvious in this month’s QV data which has values firmly on the rise.


Commercial disrupter proves popular

New commercial property disrupter, Jasper, has hit the ground running with their first investment offering achieving full subscription in just 36 hours.


LVRs kept on hold

The Reserve Bank has kept its LVR speed limits on hold amid fears low interest rates "could lead to a resurgence in higher-risk lending".

Site by PHP Developer