PHOTO: (File image) Photo: RNZ / Nate McKinnon
Some homeowners have been caught out by recent tax measures designed to level the playing field between first-time buyers and investors.
Amendments to the tax law covering the extension of the bright line test to 10 from five years were still being worked through, but were expected to be passed into law by the end of March.
Chartered Accountants ANZ financial services leader John Cuthbertson said there had been no education about how tax changes affected homeowners who were not investors.
“The concepts themselves are quite simple and we’ve really been pushing both government and Inland Revenue that there needs to be an appropriate education campaign for some of these sort of far reaching impacts,” he said.
“But we still haven’t seen anything of substance.”
In the meantime, homeowners who were not investors and did not own more than one property had been caught in the net and subject to capital gains tax as if they were investors.
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