Gift Duty

Any person making gifts with a total value of over $12,000 in any 12-month period must complete a Gift Statement and forward it to the IRD. Any person who gives gifts of more than $27,000 in a year is liable to pay gift duty.

For gift duty purposes, 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, for gift duty purposes, 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.

Gifts made to create a charitable trust, or in aid of such trust, society or institution are exempt from gift duty. From 1 July 2008 that charitable trust, society, or institution will need to be registered by the Charities Commission for the gift to be exempt from gift duty.

For more information on Gift Duty give us a call or visit the IRD Gift Duty Guide IR194