Gift duty was abolished in New Zealand from 1 October 2011. Â There is no paperwork to be lodged with Inland Revenue after that date.
However, we recommend that any substantial gifts are recorded by Deed of Gift, which your lawyer can assist you with. Â We also suggest that you complete a Solvency Statement at the time of gift.
Gifts over $5,500 per year will be added back for means testing when applying for rest home subsidies.
The Property Law Act 2007, Insolvency Act 2006, Child Support Act 1991 and Property Relationship Act 1976 all contain clauses to grant the Courts the power to set aside gifts where the donor was insolvent at the time of gift, an intention to defeat creditors, an intention to reduce child support liability or defeat the interests of a party to relationship property.
Therefore, we strongly recommend that you seek legal and accounting advice before making a substantial gift.
