Tax Law
A woman got married to her husband on September 12th. On the same day, her father gave her £50,000 to buy a flat. This was the first time in his lifetime that her father had given her any gifts.
What is the gross chargeable amount of the Potentially Exempt Transfer?
A woman got married to her husband on September 12th. On the same day, her father gave her £50,000 to buy a flat. This was the first time in his lifetime that her father had given her any gifts.
What is the gross chargeable amount of the Potentially Exempt Transfer?
£39,000
(E) £39000. The chargeable amount of a PET gifted by a parent to their child on their wedding can be calculated as follows:
Firstly, we take the value of the transfer which is £50,000 and subtract the marriage exemption amount of £5,000 available for gifts from parents. This leaves us with £45,000.
Next, we subtract any available annual exemption. Since the woman's father had not made any gifts before, the full £3,000 exemptions are available for the current and previous years, leaving £39,000.
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