Inland Revenue - Tax policy Tax Policy

News and information about the Government's tax policy work programme, including:
- proposed changes to the laws that Inland Revenue is responsible for
- updates on the progress of bills through Parliament
- policy announcements

Consultation

There is currently a lack of clarity around the deductibility of holding costs (for example, rates, interest, insurance, and repairs and maintenance expenditure) where land that is subject to tax on sale is used privately while it is held.

A second consultation document for the land tax review, Holding costs for privately used land that is taxable on sale, discusses options for clarifying this area of the law.

Submissions close on 1 November 2019.

The rules that tax certain sales of land contain exclusions from tax for people who use that land as their main home, residence or business premises

However, these exclusions are not meant to apply where the taxpayer has a “regular pattern” of buying and selling land used as a main home, residence or business premises.

There are concerns that the current regular pattern restrictions are not working as intended

The tax policy consultation document, Habitual buying and selling of land, discusses those concerns and proposes possible solutions.

Submissions close on 18 October 2019.