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

Feedback sought on rules for deducting land holding costs

7 October 2019

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, was released today. The document discusses options for clarifying this area of the law. Submissions close on 1 November 2019.