3.2.87
Estate Duty
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68
131.
I have two concessions relating to Estate
Duty. Members will recall that in 1982, in recognition of
rising asset values, the estate duty exemption limit was
Paised to $2 million, and the rate of duty scaled from 10%
to 18% on estates between $2 million and over $4 million.
To reduce the inflationary element inherent in the rise in
values in recent years, I propose to replace the present
schedule of rates with a new schedule scaled from 6% on
estates between $2 million and $2.5 million to 18% on
estates over $5 million (52). Additionally, I propose
that the duty free limit on gifts be increased from
$50,000 to $100,000 to take account of inflation (53).
(52)
On estates between
$2,000,001 and $2,500,000 $2,500,001 and $3,000,000 $3,000,001 and $3,500,000 $3,500,001 and $4,000,000
61/
8%
10%
12/
$4,000,001 and $4,500,000
14%
$4,500,001 and $5,000,000
16/
$5,000,001 and above
18%
(53)
Under the first proviso to section 6(1)(c) of the Estate Duty Ordinance.
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4.