David Cunliffe says that Labour will make sure there is an “expert panel” who will determine whether or not the house you are selling is your residence, before applying the capital gains tax.
Key said National would release its fiscal plan next week but reiterated any tax cuts would be modest and aimed at low and middle income earners.
He hammered the point that Labour would add five new taxes and tried to reprise the “show me the money” moment from his 2011 debate against Phil Goff asking Cunliffe if his capital gains tax would apply to houses in trusts.
But Cunliffe avoided answering, turning the topic instead to Labour’s broader tax plan. His advisers told media in the break that the tax would not apply to the family home if it was in a trust.
Speaking to media after the debate, Key clarified his attack on Cunliffe regarding Capital Gains Tax applying to family homes that were owned by a trust.
“My read of the [Labour policy] is that if you own a family home and it’s in a trust, under Labour you will be subject to a capital gains tax because that policy says that you don’t pay a capital gains tax on a family home… if you are the owner/occupier.Â
“But, of course under a family trust the trust is the owner.”
Key said he’d received a “ball park” figure from an unnamed tax specialist that 300,000 Kiwi homes were in trusts. Â Read more »