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:
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:
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