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Hello
why is the annual exemption of 3000 doubled for one gift? there is one with “b/f” for the previous tax year that is brought forward and again one for the tax yearin one example one gave 150000 as gift in october 2012, and two annual exemption was given in the solution, one 2007/2008 b/f and one 2008/2009
ThanksIf the first lifetime transfer in the 2012/13 tax year is in October 2012, it will firstly use the Annual Exemption (AE) of the current tax year, 2012/13 and if unused, the AE of the preceding tax year, 2011/12. An AE if unused may be carried forward for just ONE tax year for use after that year’s own AE. You would therefore compute the chargeable transfer as follows:
Transfer of value 150,000
Less: AE 2012/13 (3,000)
AE 2011/12 (3,000)
Chargeable transfer 144,000If the example you quote is in the OT notes please tell me where so that it may be corrected as you would absolutely NOT be deducting the 07/08 and 08/09 AE’s!!!!!!
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