should there not be a max of 6000 pounds available each year for annual exemption.?
3000pounds is deductible automatically cuz of the gift to the son on 6th may each year, what about the unused 3000 b/f? why did the examiner exempt this?
Ask the Tutor ACCA TX-UK
BPP Q26 Naomi- IHT
i need to know the answer from the tuitor. about this question
I do not have a copy of the BPP kit but you say in your query that the taxpayer makes a gift to son on 6 May EACH YEAR!! If this amount is 3,000 or more then it will use that year's AE so there will never be an unused AE b/f. You also say "why did the examiner EXEMPT this" - If the gift has been treated as exempt in the answer this will be using the exemption for "normal expenditure out of income". As the gift is annual it is normal and so long as the amount of the gift may be seen to be out of his income of the year without affecting his normal standard of living then the transfers will be exempt
Perfect!!.. Thank You :)
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