A BILL

TO

Amend the Estate Duty Ordinance.

Enacted by the Provisional Legislative Council.

1. Short title and commencement

(1) This Ordinance may be cited as the Estate Duty (Amendment) Ordinance 1998.

(2) This Ordinance shall be deemed to have come into operation on 1 April 1998 and shall apply in relation to the estates of persons dying on or after that date.

2. Interpretation

Section 3(1) of the Estate Duty Ordinance (Cap. 111) is amended in the table to the definition of "applicable Part of Schedule 1"---

(a) in column 1, by adding "1 April 1998" below "1 April 1997";

(b) in column 2, by adding "1 April 1998" below "1 April 1997";

(c) in column 3, by repealing "Part 23;" and substituting---

"Part 23

Part 24;".

3. Schedule 1 amended

Schedule 1 is amended---

(a) in the heading to Part 23, by adding "and before 1 April 1998" after "1997";

(b) by adding---

"PART 24

(Persons dying on or after 1 April 1998)

Where the principal value of the estate	Estate duty shall be payable at the rate per cent of
Exceeds $7,500,000 and does not exceed	5
$9,000,000
Exceeds $9,000,000 and does not exceed $10,500,000	10
Exceeds $10,500,000	15".

Explanatory Memorandum

The purpose of this Bill is to amend the Estate Duty Ordinance (Cap. 111) to give effect to the proposals in the 1998--99 Budget to exempt from estate duty estates that have a principal value not exceeding $7.5 million and to adjust rates applicable to larger estates (clause 3).