Gift duty is charge on any gifts that one person makes to another. It is only charge when gifts with a combined value of $27,000.00 are given in any 12 month period. A gift is something given when; – nothing is received in return – something is received in return, but it’s value is less than the value of the property given. Here are some examples of gifts;
1. Transfers of any property (such as company shares or land)
- Any form of payment.
- Creation of a trust.
-Forgiveness or reduction of debt.
-A debt remaining so that is cannot be collected by legal action.
If you make gifts with a combined value of more than $12,000.00 in any 12 month period, you must complete a Gift Statement and submit it to the Inland Revenue Dept. There will be no liability for gift duty unless the $27,000.00 gifting threshold is exceeded.
You can obtain further information from the Inland Revenue Dept regarding Gifting Duty.
Regards Kim
