Tax Facts - Gift Duty
The government abolished gift duty for dispositions of property made on or after 1 October 2011. This means that:
- Gift duty will not be payable for dispositions of property made on or after 1 October 2011
- Gift statements will not need to be filed for dispositions of property made on or after 1 October 2011
- However, gift duty and gift statements will remain due for dispositions of property made prior to 1 October 2011
For gift duty on any gifts made before 1 October 2011, the IRD's guide on the IRD website is helpful.
A gift is something given when:
- Nothing is received in return; or
- Something is received in return, but its value is less than the value of the property given.
If something of lesser value is given in return for a gift, the value of the gift is the difference between the two values.
These items can all be gifts:
- Transfers of any items (for example, company shares or land).
- Any form of payment.
- Creation of a trust.
- A forgiveness or reduction of debt.
- Allowing a debt to remain outstanding so that it can't be collected by normal legal action.
For more information on gifting or gift duty please give us a call.