This week’s question comes from Pat (paraphrased):
I heard something about homes being subject to CGT under the current proposal if it is past a certain size. The property I am thinking of is on 5 acres with approximately 2 acres of grass and the rest in bush. There is no income from the property. Is this correct and wouldn’t this affect many life-style type properties?
Amanda Watt from Shortland Chartered Accountants Limited kindly responds below:
At this stage, the CGT on own homes will be everything over the 4500sq metres.
From the report it looks like you would have the property valued, so theoretically the “bush” part may have a lower value so the capital gains on that
would be lower than the house portion. Of course, this will rely on a valuation being obtained both at Valuation Day and when its sold to apportion
This Q&A offers general information and is not intended as legal, tax or accounting advice. We recommend that you seek professional advice to address your personal situations when appropriate.
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