IHTM14143 - Annual exemption: multiple transfers

There is no need to be concerned about allocating the exemption between more than one transfer where

• the cumulative total (IHTM14502) remains below the threshold, or
• tax is payable but the precise allocation of the exemption does not affect the amount of tax payable on the transfers for that year by each person liable.

Where tax is otherwise payable, if two transfers are made

• on different days
• in the same tax year,

apply the exemption first to the earlier transfer. It does not matter whether the transfers are PETs (IHTM04057)] or chargeable when made (IHTM04057).

If

• two transfers are made
• on the same day

you should apportion the exemption between them.

Example

On the same day Ajani makes transfers of £4,000 and £8,000. The total value transferred is £12,000.

4000/12000 x £3,000 = £1,000 on the £4,000 transfer

8000/12000 x £3,000 = £2,000 on the £8,000 transfer