PHOTO: TESSA CRISP Tranquility, but at what price? Lifestyle blocks may not have much grace under capital gains tax proposals.
Lifestyle block owners may be in for a shock if the Capital Gains Tax goes ahead.in 2021.
Under the recommendations of the Tax Working Group, land that is larger than 4,500 square metres will be subject to the tax.
There’s no mention lifestyle blocks will be exempt like family homes, or treated like farms, which allow for the house and surrounds to be left tax-free.
Real Estate Institute chief executive Bindi Norwell said the median size of lifestyle properties sold in New Zealand in the last 12 months is 20,000sqm.
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