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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Solved- No need to look into this. Thanks! Small Gift Exemptions.
There is a question regarding the small gifts exemption.
9-During the tax year 2014–15, Mildred made the following cash gifts to her grandchildren:
(1) £400 to Alfred
(2) £140 to Minnie
(3) A further £280 to Minnie
(4) £175 to Winifred
Which of the gifts will be exempt from inheritance tax under the small gifts exemption?
A- 1, 2, 3 and 4
B- 2, 3 and 4 only
C- 2 and 4 only
D- 4 only
I’m not able to understand, if the outright gifts to individual totalling to £250 or less per donee are exempt, then how come the answer on answer sheet for June specimen gives – A i.e. all are exempt. To me, the answer must be D i.e. 4 only to Winifred. As to Minnie total gift amount is 140+280 which is more than 250.
I guess i found the answer.
The answer must be D as you say!