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Solved- No need to look into this. Thanks! Small Gift Exemptions.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Solved- No need to look into this. Thanks! Small Gift Exemptions.

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by Tax Tutor.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 3, 2016 at 12:08 pm #303238
    farhan
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    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.

    March 4, 2016 at 5:11 pm #303448
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    The answer must be D as you say!

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