TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 218

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.