Businessmen Who Buy Farms Blamed For High Prices
Businessmen who buy farms to dodge tax and supertax are blamed for rocketing prices. Land worth £ls an acre before the war fetches about £SO now, and tax officials say they can do nothing about it as the law stands.
Some city men are said to be buying farm land, spending freely to improve its value—getting a tax rebate on this expenditure—and then selling at a profit. The profit classed as “capital appreciation” is tax free, too. An income tax official said: “Some people are taking advantage of the regulations of April 6, 1946, under which money spent on improving farm land is tax exempt.
“A man who spends £3OOO on improvements can recoup about £I3OO from the Inland Revenue. “Then he can sell for what it has cost him, and he’s made a good profit—especially as he may also have had a development grant. “In the main, people are going into farming as a business or a hobby. “But even as a hobby which apparently loses money, farming can still pay a dividend by bringing a rich man down from the top supertax bracket to something substantially less than 19s 6d in the
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https://paperspast.natlib.govt.nz/newspapers/BPB19500320.2.35
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Bay of Plenty Beacon, Volume 15, Issue 12, 20 March 1950, Page 5
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202Businessmen Who Buy Farms Blamed For High Prices Bay of Plenty Beacon, Volume 15, Issue 12, 20 March 1950, Page 5
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