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P6 Qs on gifts out of normal income

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › P6 Qs on gifts out of normal income

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Tax Tutor.
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  • November 15, 2016 at 11:11 pm #349167
    Diane
    Member
    • Topics: 21
    • Replies: 39
    • ☆☆

    Hi

    I have a qs on the above topic. (apologies but there is no ATT forum for P6 paper)

    If an individual is to make gifts out of normal income (and be able to prove they have sufficient income to maintain their standard of living), is this taxable? Or used up in the NRB when doing the IHT computation?

    Thanks in advance

    November 22, 2016 at 8:07 am #350555
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    It is the gifts that are normal / regular and if made out of income without impacting on the normal standard of living for the taxpayer then the gifts are exempt – thus using neither the NRB nor the AE of the taxpayer

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