Gifts out of Surplus Income - Carry Forward
Posted: March 27th, 2021, 10:38 am
I've seen that one can carry forward surplus income for two years before it is considered capital so far as giving gifts out of surplus income and avoiding inheritance tax is concerned. I am going to try to maximise the amount I give, which may expose me to going over in the (any) current tax year unless I use previous years' residual excesses.
This is the third year of this activity and in both previous years I had a few thousand left after completing all my records, some time after the tax year in question.
Am I allowed to consider the first part of this year's gift to be from my excess from 2018-19 and the next part of it to be from 2019-20?
If I'm allowed to do this on an ongoing basis, I can be prudent with my gift calculation for the current year, leaving a theoretical comfort amount to give in the next year?
I already use the 3K allowance.
Ed
This is the third year of this activity and in both previous years I had a few thousand left after completing all my records, some time after the tax year in question.
Am I allowed to consider the first part of this year's gift to be from my excess from 2018-19 and the next part of it to be from 2019-20?
If I'm allowed to do this on an ongoing basis, I can be prudent with my gift calculation for the current year, leaving a theoretical comfort amount to give in the next year?
I already use the 3K allowance.
Ed