Wednesday, September 3, 2014

HOW KEY GO(A)FFED CUNLIFFE

Key certainly Go(a)ffed Cunliffe per shades of 2011 with his question on Labour's Capital Gains Tax in the debate last night.    Cunliffe looked like the quintessential Possum in the headlights at 90k and with no place to hide.    He declined to answer the question and, in the words of one media commentator, the debate was all over rover and slam dunk to Key.

Later Cunliffe attempted to explain his failure to answer the question with the ascertain that Key was wrong to claim that the policy would apply to family homes held by Trusts.  

Just one small problem David .... you are on record saying 'We will ensure trusts are not used as a means of avoiding a CGT'.      Silly boy ... when you're in a hole stop digging.

Hook, line and sinkered.


4 comments:

Anonymous said...

Rob Hosking said today that speculators will love the CGt because at the moment they are taxed at their top tax rate (say 33%) but if this comes in it will only be 15%.

“Labour – giving property speculators a 50% reduction in tax.”

Barry said...

In Australia I think if the home in which you live is owned by a trust it is not exempt from cgt.

In NZ I think at least one of the reasons there are so many homes in trusts is to protect them from the resthome-subsidy rules.

Barry said...

I think that Rob Hosking (Anonymous at 3:48 pm) might be wrong: the gains made by speculators would still be revenue gains (ie trading profits rather than capital gains, because the houses are trading stock of the speculators) so would still be taxed as "normal" income.

Watcher said...

'In NZ I think at least one of the reasons there are so many homes in trusts is to protect them from the resthome-subsidy rules."

That certainly is a major factor in promotion of Trusts in NZ.
With the recent retrospective IRD rules on gifting this may not be as attractive.