1. avatar says

    Dear Tutor,

    In the small gift exemption example that you gave in the lecture of £200 each time(£400 total), Cant we deduct the small gift exemption of £250 from the total of £400 and tax the remaining £150???

    And another small question. if a gift is made of say £300 on a particular day, can we deduct the small gift exemption and tax the remaining £50?

  2. avatar says


    In regards to the small gifts exemption.

    In illustration 10 – you state that the gifts of £200 each to two friends at Christmas would come under the small gifts allowance. However as it’s two gifts this would total£400, wouldn’t this remove the exemption?


    • avatar says

      They say that Gifts of up to £250 per donee per tax year are exempt. However, if this limit is exceeded, the exemption is lost. from my point of view it means that the donor can give this amount to many donee (no matter how many they are) and will be lost if it exceed £250 per donee no the total.

  3. Profile photo of Avnish says

    Hi Tax Tutor

    Would we just assume that there is unused AE for previous years?

    From the example you went through and the answers you went through, the answer assumes that there is unused AE for prior years when it isn’t mentioned.

    Please clarify.

  4. avatar says

    In the example would it be possible for a parent wanting to give 10k to a son first transfer 4k as marriage exemption and 6k annual exemption in order not to waste the AE b/f?

    many thanks for this first class lecture.

    looking forward for your reply


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