Gift Duty

If you make gifts totalling more than $12,000 in any 12 month period, you are required to complete a Gift Statement and forward it to the Inland Revenue Department.   Anyone who gifts more than $27,000 in any 12 month period is liable to pay gift duty.

Gifts are deemed liable for gift duty if:-

v  You receive nothing in return;

v  Something is received in return, but its value is less than the value of the gift given.

Gifts can be:- 

v  Payments of any kind;

v  Transfers of any type eg shares, property or land;

v  A forgiveness or reduction in debt;

v  Allowing a debt to remain outstanding so that it can’t be collected by normal legal action.

If you make a gift to create a charitable trust, or establish any society or institution exclusively for charitable purposes, or any gift in aid of such trust, society or institution, there is no gift duty payable.  However, for this to be the case, that charitable trust, society or institution must be registered by the Charities Commission.  Their website contains a list of all registered bodies.

This table outlines the rates of gift duty.  If you would like more information, visit the IRD Gift Duty Guide IR194 or give us a call. 

Value of Gift              Duty Payable

0 to $27,000                            Nil

$27,001 to $36,000                 5% of value over $27,000

$36,001 to $54,000                 $450 plus 10% of value $36,000

$54,001 to $72,000                 $2,250 plus 20% of value over $54,000

Over $72,000              $5,850 plus 25% of value over $72,000

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