But most businesses are subject to a 28 per cent tax rate, and trusts (and trustees) are subject to 33 per cent tax on earnings. They’ll pay income tax on that. If you bought an asset with the intention of later selling it on, you’re looking to make money and should pay tax. The argument is that a 28 per cent tax rate encourages people to invest money in businesses and doing that creates jobs. On introducing capital gains, he says: “There’s been a canard promoted: capital gains is complicated.

Source: Stuff March 01, 2021 16:00 UTC