You are here: Home > Resources > Tax Facts

Tax Facts - Gifting

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 is the difference between the two values.

In the context of trusts, 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.

If you propose to make a gift to a trust, please contact us to discuss the implications.  It is important to take into consideration what the trust, and the gifts to the trust are designed to achieve as part of a long-term strategy.

The government abolished gift duty for dispositions of property made on or after 1 October 2011.  

For gift duty on any gifts made before 1 October 2011, the IRD's guide on the IRD  website is helpful.

Please be aware that there is a $6,000 annual gifting limit for rest home subsidy purposes.

For more information on gifting please give us a call.

Supplied by CCH Business Fitness NZ

GST Refunds

It is now compulsory for Inland Revenue to provide GST refunds by direct credit.  Refunds by cheque will only be made if Inland Revenue does not have bank details or there are extenuating circumstances.



Balclutha Office
102 Clyde Street, Balclutha
Find us on the map
P. 03 4180020
Dunedin Office
7th Floor Westpac Building,
Cnr Moray Place & George Street, Dunedin
Find us on the map
P. 03 4741394