Will I have to pay tax on any capital gain?
Question from Clifton updated on 3rd April 2009:
Our expert responded:
New Zealand does not have any tax on capital gain. However, if you buy shares or property with the intention of on-selling those shares or property, then you are taxed on any gain made, in the same way as a supermarket buys a can of beans for $1 and sells it for $1.50. Assuming you bought both the shares in the company and the properties owned by the company with the intention of owning them long-term, then there will be no tax payable on the capital gain of the shares.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.