PLC Paper No. LS 115

Paper for the House Committee Meeting
of the Provisional Legislative Council
on 6 March 1998

Legal Service Division Report on
Estate Duty (Amendment) Bill 1998

Object of the Bill

To amend the Estate Duty Ordinance (Cap. 111) ("the Ordinance") to give effect to the proposals in the 1998-99 Budget.

Provisional LegCo Brief Reference

2. FIN SCR 7/2201/97 issued by the Finance Bureau on 26 February 1998.

Date of First Reading

3. 4 March 1998.

Comments

4. The Bill seeks to amend the Ordinance to exempt from estate duty estates of persons dying on or after 1 April 1998 which have a principal value not exceeding $7.5 million. Estate duty is charged at progressive rates depending on the size of the estate. Under clause 3 of the Bill, these rates are specified on 5% for estates which exceed 7.5 million but do not exceed 9 million; 10% for those exceeding 9 million but not exceeding 10.5 million and 15% for those exceeding 10.5 million.

5. These proposals will be implemented as an interim measure from 1 April 1998 by the Public Revenue Protection (Estate Duty) Order 1998 (L.N. 152 of 1998).

Conclusion

6. The legal and drafting aspects of the Bill are in order.

Prepared by

Lam Ping-man, Stephen
Assistant Legal Adviser
Provisional Legislative Council Secretariat
3 March 1998