Property renovators and “flippers” who buy and sell for a quick profit could be taxed at their highest marginal rate of up to 47 per cent when selling houses after an Administrative Appeals Tribunal decision, lawyers say.

This would also mean losing their capital gains tax discount of 50 per cent even if they hold the property for 12 months or more, lawyers add. The CGT discount results in tax being payable on only half the net capital gain.