Originally Posted by
COLIN
In respect of shares: its all a matter of "Intention" when you purchased the shares, i.e. "did you INTEND to sell them for a capital gain. But Intention is very hard to prove, as the IRD readily admit.
Scout around the forum, Razor, and you will find that plenty has been posted at various times on this subject. It was interesting to note that, in preparing this year's Budget, Treasury had strongly advocated bringing in a "5-year rule", i.e. unless you held the shares for 5 years you would be taxed on any capital gain on sale. Thankfully the Government didn't go along with the idea. "Brightlining" was the description Treasury used - I can't for the life of me figure out why that term, but it is probably blindingly obvious to some.