Latest News [index] Budget 2010
The May budget has confirmed the expected personal tax cuts and GST rise. Other features of the budget include:
- a reduction in the company tax rate to 28% effective 1 April 2010;
- depreciation deductions will no longer be available for buildings with an expected useful life of 50 years or more;
- from 1 April 2010, qualifying companies and loss attributing qualifying companies will be taxed as limited partnerhsips. This means that profits and losses (subject to any applicable loss limitations that might apply) will flow to the shareholders directly meaning that shareholders in these companies that are on the higher marginal rate cannot take advantage of the lower company tax rate;
- property investors will no longer be able to apply rental lossess in determining Working for Families eligibility;
- no change to the trustee rate;
- increased funding for the IRD to target property speculators.
If you have any questions about the budget or how it might affect you please telephone or e-mail to speak to a member of the Ayres Legal team.