Gift duty – general power of appointment

Submission

(Matter raised by officials)

The definition of “general power of appointment” should be reinserted in the Estate and Gift Duties Act 1968.

Comment

The Estate Duty Repeal Act 1999 repealed from the Estate and Gift Duties Act 1968 (EGDA) a number of definitions that were no longer relevant since estate duty had been repealed. One of the definitions that was repealed was “general power of appointment”.

This term is, however, used in paragraph (e) of the definition of “disposition of property” in section 2(2) of the EGDA and is relevant for gift duty purposes. It was not intended in 1999 to repeal any provisions that apply for gift duty purposes.

Officials therefore recommend that the definition of “general power of appointment” be reinserted in the EGDA.

Recommendation

That the submission be accepted.