Lifetime transfers: annual exemption: summary
A person’s lifetime transfers are exempt up to a total of £3,000 in an income tax year - 6 April to 5 April the following year.
The exemption applies to
- lifetime transfers by individuals (IHTM04053)
- the lifetime termination of an interest in possession (IHTM16060) in settled property, and
- apportionments made to persons under IHTA84/S94 (transfers by close companies). (IHTM14851)
The exemption does not apply to the deemed potentially exempt transfer (PET) under FA 86/102(4) and FA86/103(5)
If a transfer of value (IHTM04024)) is more than the amount of the available exemption: