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Hello,
I am bit confused regarding the annual exemption and nil rate band usage. Could you please explain to me why in some cases we subtract the annual exemption from our computations while in others we do not even take it into consideration? Same applies for the nil rate band..
I was under the impression that we always take the annual exemption of 3,000 for the CY and in some when unused from the previous period.. or is there some kind of base limit above which we do not use the annual exemption?Thank you for the clarification
You are correct about the annual exemptions CY then PY unused brought forward. If there are two gifts in the same tax year then the first gift gets the AE and the second will not as it’s be fully used.
The NRB is a little more complex and I suggest you watch the videos and read the manual first.
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