'Roll-over relief' for quake businesses
The government extends depreciation tax relief package.
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The government will extend earthquake tax relief to Canterbury business.
A parliamentary Bill will give “roll-over relief” which provides taxpayers with respite on depreciation recovery income resulting from buildings damaged by the earthquakes.
Revenue Minister Todd McClay yesterday released details of the Supplementary Order Paper (257) to the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill.
It will extend the time limit for tax measures introduced to address Canterbury earthquake-specific issues that was set to expire at the end of the 2015-16 income year.
The proposal is to extend it to the end of the 2018-19 year.
“Our objective is to help create an environment that will support people and businesses in Canterbury to get back on their feet,” Mr McLay says in a media statement.
“Firstly, we understand that reinvestment in Canterbury is occurring through groups of investors teaming together, rather than sole investors. So to ensure that the roll-over relief continues to be available in this situation, the proposal is that the rollover relief continues to benefit the original property owner,” he says.
The second important feature of the proposals is that in the case of a building, a commitment to the rebuild in Canterbury must have been demonstrated by the end of the 2015-16 year in order to be eligible for the time extension.
Further information on the Supplementary Order Paper can be found at http://taxpolicy.ird.govt.nz/
Chris Hutching
Wed, 26 Jun 2013
Wed, 26 Jun 2013
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'Roll-over relief' for quake businesses
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