Annual Exemption (Carry Back??)

[DavidHC]

If an indidual has not used their exemption in the previous year and the current year's allowance is being used in full, it is possible to make a gift for £6,000 in total that is immediately outside an individual's estate for IHT purposes

In the following year, an indivudal can then make a further gift of £3,000 within the exemption for that year.

Suppose instead, the individual makes a gift of £9,000 in total in the current year, the remnant £3,000 would be a PET (reamining inside the estate for seven years) But sssuming they survive to nest year and make no further gifts, can the Settlor declare the £3,000 PET towards the annual exmeption later in the following year? This would seem wholly equitable on the face of it, but fairness aside, would it be permitted or would it be a case of "tough cheese" to the Settlor for not chosing to defer the gift?

(Irrespective of the answer, I am assuming that title tranfer of any asset and CGT computations will have to be done on the basis of when the gift was actually made).

[Lee Young]

One past annual exemption can be claimed - therefore a gift this year of £6,000 would use up 2009/10 and (if not already used) 2008/2009. Next year's exemption can not be used until we actually get to next year. Therefore the extra £3,000 will remain on the clock for 7 years.

The title will be transferred on the date of the gift and this will also be the CGT trigger point.