This 2010 Act covers gift duty exemptions for some distributions of property, gifts to local or central government, and for gifts to donee organisations.

Several new exemptions from gift duty have been added to the Estate and Gift Duties Act 1968.

Background

In general, gift duty is imposed on any gift of property in New Zealand, or outside New Zealand if the donor's permanent home is in New Zealand, or the donor is a company incorporated in New Zealand. A number of exemptions from gift duty are provided in section 73 of the Estate and Gift Duties Act 1968.

Key features

New section 73(2)(aa) of the Estate and Gift Duties Act 1968 exempts any gift required by an order of a court under the Law Reform (Testamentary Promises) Act 1949 or the Family Protection Act 1955 from gift duty. The exemption ensures that the original policy intention that such distributions of property are exempt from gift duty is maintained.

New sections 73(2)(jd) and 73(2)(kb) exempt from gift duty any gifts made to central government and local authorities, provided these organisations are not carried on for the private pecuniary benefit of any individual. This exemption removes an impediment to donors who want to give property (monetary and non-monetary) to local or central government, and will reduce the associated compliance costs for those donors.

New section 73(2)(o) exempts from gift duty any gifts made to donee organisations. This exemption aligns the gift duty treatment of gifts made to donee organisations with the policy for encouraging greater giving to charitable and philanthropic causes.

Application dates

The exemption for distributions of property made in accordance with a Court Order under the Law Reform (Testamentary Promises) Act 1949 or the Family Protection Act 1955 applies retrospectively to 24 May 1999, the date when Part 1 of the Estate and Gift Duties Act 1968 was repealed.

The other exemptions apply from the date of enactment.