CHASM Director, Professor Lymer, an expert in taxation, was interviewed on Radio New Zealand on 27 February 2019, over the hotly debated possible introduction of a Capital Gains Tax in the country. The tax was recommended the previous week by their Tax Working Group advising the New Zealand Government. Professor Lymer was asked to provide a view from the UK where we have had a long standing similar tax.
New Zealand is the only of the 35 OECD countries that doesn’t have a Capital Gains Tax. The UK established its equivalent tax in 1965 and this year expects to raise £9.9 billion from 250,000 individuals (with an overall population of 66 million). Professor Lymer was able to talk about the value of this tax to aid the overall fairness of the tax system. He also highlighted some of the key features of how the UK version of this tax operates – such as that family homes are exempt from the tax in the UK and that rates payable are linked to levels of income so higher earners pay proportionally more when it is due than those who are lower earners.
The New Zealand government is expected to make a decision on whether to introduce a Capital Gains Tax in April 2019.
Listen to the radio interview here: https://www.radionz.co.nz/national/programmes/morningreport/audio/2018684297/capital-gains-tax-no-big-deal-international-experts