Issued
01 Aug 1964

Estate and Gift Duties Amendment Act 1964 (scale of rates)

Archived legislative commentary on the Estate and Gift Duties Amendment Act 1964 (scale of rates) from PIB vol 13 Aug 1964.

This commentary item was published in Public Information Bulletin Volume 13, August 1964.

More information about Public Information Bulletins.

Estate duty reduced - Budget proposals explained

Budget announcement

In the course of his 1964 Budget Statement the Minister of Finance, the Hon HR Lake, announced reductions in estate duty which, it was hoped, would be an incentive to increase production. These reductions are being put into effect immediately and will be validated by legislation during this session of Parliament.

The date from which the new scale of rates will apply

The new rates of estate duty will apply to the estates of all persons who die on or alter 25 June 1964.

The Reductions effected by the new scale of rates

Under the new scale of rates the non liability limit has been raised from £2,000 to £4,000. This will mean that estates of a value not exceeding £4,000 will not be liable for any estate duty at all.

In the range of estates between £4,000 and £48,000 the existing rates have been reduced but estates of £48,000 or more will continue to be charged with duty at the rates which were introduced in 1961.

Examples of the reductions effected

Where estate is left to widow

Value of estate Duty under 1961 scale Duty under new scale Reduction in duty
£ £ £ £
4,000 Nil Nil Nil
5,000 Nil Nil Nil
10,000 Nil Nil Nil
15,000 376 286 90
20,000 1,200 960 240
30,000 3,600 6,060 540
40,000 6,538 6,160 378

 

Where estate is left to widower

Value of estate Duty under 1961 scale Duty under new scale Reduction in duty
£ £ £ £
4,000 Nil Nil Nil
5,000 Nil Nil Nil
10,000 450 300 150
15,000 1,253 953 300
20,000 2,250 1,800 450
30,000 5,000 4,250 750
40,000 8,172 7,700 472

 

Where estate is left to adult children

Value of estate Duty under 1961 scale Duty under new scale Reduction in duty
£ £ £ £
4,000 120 Nil 120
5,000 200 50 150
10,000 900 600 300
15,000 1,880 1,430 450
20,000 3,000 2,400 600
30,000 6,000 5,100 900
40,000 9,340 8,800 450

A complete table showing the rates which will apply on or after the 25th June appears below. Further copies of this table can be obtained on request from the office of any District Commissioner of Stamp Duties. Persons holding the Information Pamphlet issued by the Department in June 1964 on "Estate Duty in New Zealand" should note the changed rates.

 

Scale of rates of estate duty for estates of persons dying on or after 25 June 1964

Net value of estate in steps Basic duty on net value of estate Plus duty on the excess between steps at following rates Net value of estate in steps Basic duty on net value of estate Plus duty on the excess between steps at following rates
£ £ £ £ £ £
Less than 4,000 Nil 5% 36,000
38,000
7,200
7,900
39%
41%
5,000 50 7% 40,000 8,800 43%
6,000 120 9% 42,000
38,000
9,660
7,900
45%
41%
7,000 210 11% 44,000 10,560 47%
8,000 320 13% 46,000 11,500 49%
9,000 450 15% 48,000 12,480 43%
10,000 600 17% 51,000 13,770 45%
11,000 770 19% 54,000 15,120 47%
12,000 960 15% 57,000 16,530 49%
14,000 1,260 17% 60,000 18,000 51%
16,000 1,600 19% 63,000 19,530 53%
18,000 1,980 21% 66,000 21,120 55%
20,000 2,400 23% 69,000 22,770 57%
22,000 2,860 25% 72,000 24,480 59%
24,000 3,360 27% 75,000 26,250 51%
26,000 3,900 29% 80,000 28,800 53%
28,000 4,480 31% 85,000 31,450 55%
30,000 5,100 33% 90,000 34,200 57%
32,000 5,760 35% 95,000 37,050 59%
34,000 6,460 37% 100,000 40,000 40% on excess