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6. On 14 July 2022 Ray made a gift of £5,000 to his daughter, Wanda. On 17 October 2023 he made another gift of £6,700 to Wanda.
What is the value of the potentially exempt transfer to Wanda made on 17 October 2023?
A.£700
B.£2,700
C.£3,700
D.£6,700
The correct answer is C.TUTORIAL NOTE -The gift on 14 July 2022 utilises all Ray’s annual exemption for the tax year 2022-23. Therefore, the value of the PET made on 17 October 2023 is £3,700 (6,700 less the annual exemption of 3,000 for the tax year 2023-24).
all the above is given in Study hub
My Question is shouldn’t we use the 1000 AE of the previous year in PET of 17 October 2023 like carry forward it from the PET of 2022? Also couldn’t we also apply The nil rate band of 325000GBP?
Could you please clarify why the above 2 isn’t applicable in the above ques as per Study HubThe answer is correct.
14/7/22 – gift 5000
22/23 ae -3000
B’fwd 21/22 – 2000 – so not taxable17/10/23 gift 6700
AE 23/24 – 3000There is no AE 22/23 to bring forward.
You always use the current year AE first
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