Investors: Labour policy would increase rents
Andrew Little revealed yesterday that Labour would not allow investors to claim losses from their investment portfolio against other income.
“This will create a level playing field for home-buyers and help families get a fair shot at buying a place of their own.”
He said investors had avoided paying $150 million in taxes last year, by claiming losses from negatively geared investments.
“The loophole is heavily used by foreign buyers and most of the gains go to the people on the highest incomes.
“The speculators’ tax loophole will be phased out over five years. This will save taxpayers around $150 million a year once fully implemented, and a total of $1.2 billion over a decade. Labour will invest this money into making homes warm and healthy.
“As well as closing this loophole Labour is going to ban foreign speculators from buying existing homes, and we will make someone who sells a rental property within five years pay income tax on the capital gain.”
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