The fact that an enormous inestment class - owner occupied real estate - is likely to be excluded from a CGT could mean that many more people will favour further capitalisation of their homes either by bidding up the price of land further or by further investment in improvements. That could be at the expense of investment in equities (which would be subject to a CGT)
In addition those who do not have their own homes but do have investments in businesses and shares could be further encouraged by the tax system to divest from income producing assets into owner-occupied residential property.
If owner-occupied housing is exempt from a CGT, There should be scheme to allow those who do not own their own homes to have a higher exemption threshhold before CGT applies.
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