Increases Up To 590 per Cent. in Death Duties
I Special to “Northern Advocate’’] AUCKLAND, This Day. Increases, ranging up to 590 per cent, are made in the new rates of death and succesion duties in New Zealand, which have come into operation as a result of the legislation passed during last session of Parliament. Gradualy the public is beginning to realise that the effects of the. new scale are far in excess of what was anticipated when the change was made. Beneficiaries, and particularly widows, are finding that the new rates on estates between £7OOO and £IO,OOO, where the rise is steepest, are at least 350 per ©cent, higher, as compared with the old. Beneficiaries of the next generation, that is. children, are discovering that increases of 75 to 100 per cent, and over are not uncommon. The factors contributing to these extraordinary increases are the reduction in exemption allowed to widows, and the abolition of the exemption for life insurance policies. How the scales compare is apparent from the following table
Estate Passing to Widow
(Exempt up to £5000)
Net Value Old New %of of Estate Rates Rates® Incrs. Incrse.
Estate Passing to Child
Larger Increases It has been presumed in compiling these tables, that the estates in each case include life insurance policies of at least £IOOO.
The largest proportionate increase for widows is in that part of the scale where the rate of duty was formerly fairly light. In the second scale, relating to child beneficiaries, the increases are more evenly spread.
£ £ £ £ £ 6.000 - 156 156 - 7,000 50 345 295 590 8.000 100 565 465 . 465 9,000 180 818 638 354 10.600 240 1089 849 354 20,000 1920 3520 1600 83 30,000 4100 7480 3380 82 50.000 8860 15200 6340 72
2,000 30 64 34 113 3,000 70 144 74 106 4,000 130 256 126 97 5.000 210 373 163 78 6,000 320 616 296 93 7,000 440 775 335 76 8,000 510 949 439 86 9,000 660 1140 480 73 10,000 740 1133 593 80 20.000 2220 4053 1833 83 30,000 4100 7480 3300 82 50,000 8860 15200 6340 72
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/NA19400109.2.86
Bibliographic details
Northern Advocate, 9 January 1940, Page 8
Word Count
354Increases Up To 590 per Cent. in Death Duties Northern Advocate, 9 January 1940, Page 8
Using This Item
NZME is the copyright owner for the Northern Advocate. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons New Zealand BY-NC-SA licence . This newspaper is not available for commercial use without the consent of NZME. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in