Gift Duty

[Adam]

Hi.

I am unsure which law's apply to me regarding gifting of cash. I live in the UK and am resident however my domicile is New Zealand (DOM1/P86).

If I want to gift some money I have in Jersey (never bought into the UK) to someone else in Jersey what rules am I bound by?

Do the UK gift rules of needing to live 7 years apply as it is not UK assets or not involving UK domiciles - also for IHT puposes offshore assets don't count anyway as I am non-domiciled.

Also as I live in the UK am I bound by New Zealand law at all? The Jersey funds are not NZ assets?

NZ Inland Revenue have told me:
I advise that under section 63 of the Estate and Gift Duties Act 1968
dutiable gifts are:-
- gifts of property situated in New Zealand,
- gifts of property situated outside New Zealand, where the donor is
domiclied in New Zealand.

A chocolate fish for someone who can tell me!

Thanks,
Andrew.

[Lee Young]

As you are not domiciled in any part of the UK, and the gift you are making is not of assets situated in the UK, the UK Inheritance Tax rules do not apply. Therefore no 7 years to worry about.

It would look as though, as you are still domiciled in NZ, that the 1968 act you quote will means that the gift will be caught by the NZ rules.

[Adam]

Thats what I would have thought also - however NZ law has no juristriction here and it is not NZ assets either - so my take is I am only bound by Jersey Gifting rules - whatever they may be (if any).

Does anyone think this would be wrong?

[Lee Young]

You may think that NZ has no jurisdiction over you as you are abroad, but I suspect that is not, in law, the case. However, NZ will certainly have jurisdiction over your executors after your death, which may be when any tax liability arises.