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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › IHT Question
Hello, the below question is from the ACCA tax articles- IHT part 1 (last example). It says below that both 18/19 and 17/18 AE is available. However, in the first paragraph it states that he has not made any gifts SINCE 6-April-2017 which is the 17/18 year, which would imply he made a gift and used that AE up. Am I missing something?
EXAMPLE 17
On 19 September 2018, William made a gift of £20,000 to his daughter when she got married. He has not made any other gifts since 6 April 2017.
The gift is a PET, but £5,000 will be exempt as a gift in consideration of marriage and William’s annual exemptions for 2018-19 and 2017-18 are also available. The value of the PET is therefore £9,000 (20,000 – 5,000 – 3,000 – 3,000).
Written by a member of the TX (UK) examining team
You are not reading the information provided correctly – it is telling you that any previous lifetime transfers were before 6 April 2017 and therefore the 17/18 AE has not been used!