National Party leader Simon Bridges says over 17,000 lifestyle blocks in Hawke's Bay could be hit by a capital gains tax. Photo / File
National Party leader Simon Bridges says over 17,000 lifestyle blocks in Hawke's Bay could be hit by a capital gains tax. Photo / File
National Party leader Simon Bridges says more than 17,000 lifestyle blocks in Hawke's Bay could be affected by a proposed capital gains tax.
But Finance Minister Grant Robertson says no final decision have been made on the Tax Working Group's recommendations.
While the Tax Working Group has recommended an exemptionto the family home when it comes to a capital gains tax, lifestyle blocks over 4500 square metres would not be exempt.
"The reality is, that's a little over half a rugby field," Bridges said. "There are 17,657 properties in Hawke's Bay alone which fit into that category.
"That figure doesn't include those who run a business from home, or who have flatmates."
He said any capital gains made up until the point a CGT is introduced will be protected, so the tax, if adopted, will apply to financial gain made on a property only after April 1, 2021.
The recommendation to not exempt properties over 4500 square metres is based on existing laws around what is considered a "main home" when selling properties under the brightline test, a tax introduced by National in 2015.
A capital gains tax only affects a property when it is sold.