Plan for Capital Gains Tax 20 Feb 2019

If Capital Gains Tax is introduced (and there is now some debate about this), all assets affected by the tax will have to be valued at the time the new tax starts.

A rental property will be worth more if it has recently been renovated, repainted etc. Other people are going to cotton on to this idea, so expect some difficulty getting tradesmen as the deadline for getting a valuation approaches. You will minimise capital gains tax by maximising the value of your assets at the start of the regime.

You will probably get a better result by using a professional valuer than relying on government valuation.

Expect a stampede to get valuers. They are likely to be overworked. Too much work equals an increase in fees. You could get in early and get the valuer to complete his/her job early. It might be a simple matter to update the figures later, without the need for a second site visit.

Capital Gains Tax, if it comes in, is likely to be as wide-ranging as possible and include your business, your boat, your bach and so on. You may need to value hobby assets such stamp collections, art etc.

Above all, documentation is going to be extremely important. Inland Revenue would have the right to ask you how you arrived at the value at the start of CGT and require you to prove it.

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