Proposed changes to Bright Line Testing
Changes to the Taxation Act 2015 aim to curb property speculation under the Labour led Government, as they are advancing their stance on freeing up more houses for New Zealanders.
The Bright Line Test on residential property sales will be extended from 2 years to 5 years in legislation, which is currently progressing through Parliament.
Currently, residential property sold within two years of acquisition is subject to income tax. This is subject to exemptions, including; the family home, property acquired through Estate distributions or relationship property settlements.
The Government has advised that this will in their view, make it relatively easy for speculators to avoid the rule by holding onto their property for just over the two-year period before selling.
Once the changes come into force, speculators will incur income tax on their profits and gains if they sell their residential property within 5 years of acquiring it. The Government hopes the changes will make property speculation less attractive and help improve housing affordability for owner-occupiers.
The exemptions in current legislation will continue (as above).
The bright-line test extension will apply when the Bill receives its Royal Assent expected to be sometime in March.
The Tax Working Group are expected to factor the current changes in the Bill into any consideration of a comprehensive capital gains tax. At present, New Zealand’s capital gains tax law is incomprehensive.
Introducing our new lawyers
Tuangane Matangi joined Clark & Gay as a Law Clerk and was admitted to the High Court in October 2017. Tuangane is from Southland and completed her first year at law school amid earthquakes in a marquee erected at the law school car park. She graduated from the University of Canterbury in 2015 with a LLB. Prior to joining Clark & Gay, she held a legal role and worked as a journalist and photographer for a daily and weekly newspaper in Gore.
Shiree Blackwell joined Clark & Gay in January 2017. Shiree has over 16 years experience in commercial and property law. We are very pleased to have Shiree and her expert experience and skills on board. Shiree currently lives in Japan, advising us remotely. Shiree is there supporting her husband who is on a Zespri assignment.
Sara Fisher joined us at the start of 2016, and stayed with us until September 2017. She enjoyed her time here and has since moved to Queenstown for a life style change.
Clark and Gay has now relocated to 37 Seddon Street, Waihi. We are pleased to be the new tenants of the old Waihi Public Library building, formerly the Bank of New Zealand, which opened in 1901.
The building has been renovated to provide a fresh modern office space. We also have a fully operational conference room, with kitchen facilities that will be available for hire later in 2017. All other contact details remain the same. We look forward to seeing you soon.
Introducing our new receptionist - Melissa Samuels
We are pleased to announce that Melissa joined our team as receptionist at the beginning of 2017. She has fast become a great asset to our team and is here to help you as our first point of contact when you pop in or call us.
Our new offices will be open to the public to view on Friday 2nd December from 2pm till 4.30pm. This will provide our clients and locals the opportunity to see this restored and rennovated piece of Waihi history.
Please join us for a walk through.
We are looking forward to our big move and can report the renovations are coming along nicely. We are happy to say many of the original features have been restored to their former glory.
The original time line for the move was to be August, but we are going to push this out by a few weeks to ensure we do the building justice and really enhance all those historical features that make it so special
The retirement of Mike Curtis
Clark & Gay Solicitors farewells former partner Mike Curtis this month after a long and successful career spanning over 30 years in the legal industry.
Mike commenced his legal career at Clark & Gay as a staff solicitor in 1980, before purchasing the firm from Mr George Gay in 1995 and was sole practitioner until entering into partnership with Gemma Barden.
Mike is not one to keep still for long however, and retirement will not change that. He is now looking forward to getting more involved in his many other interests, including hunting, sailing and travel.
Mike has been a large fixture in the Waihi and regional community for many years and will be missed by the team at Clark & Gay. We wish him well on his many new adventures.
Gemma Barden has worked with Mike since 2011 and is now Principal of the firm. She has two staff Solicitors, one Legal Executive and four support staff within her team.
We are on the move
We are relocating our offices to 37 Seddon Street, Waihi (the former Bank of New Zealand building and previously the Waihi Public Library) in early August. We will advise an exact date shortly.