Chapter 7 personal tax

Parki82Parki82 Registered Posts: 33
Can someone explain to me please why the gifts in the question only deduct one annual exemption?
The question states that no other transfers were made in recent years therefore the annual exemption would be available. It has been deducted twice for the trust payment which has now become payable on death, ie this years and previous tax years so 6k deductible, but the gifts is only deducting one annual exemption and I’m not sure why...
Thanks in advance

Answers

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,442
    The first transfer falls into the 2016/17 tax year so you would have the previous year annual exemption plus the 2016/17 exemption.
    For the gift in 2017/18 tax year you can use again one exemption against the earlier gift.
  • Parki82Parki82 Registered Posts: 33
    Thank you for your help! It’s clear as day now!
    Thanks again
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