A gift is something given when:

  • Nothing is received in return, or
  • Something is received in return, but its value is less than the value of the property given
  • If something of lesser value is given in return for a gift, the value of the gift is the difference between the two values

These items can all be gifts:

  • Transfers of any items (for example, company shares or land).
  • Any form of payment.
  • Creation of a trust.
  • A forgiveness or reduction of debt.
  • Allowing a debt to remain outstanding so that it can’t be collected by normal legal action.

Tax facts supplied by CCH