Annual Exemption Print
The annual exemption for lifetime gifts has remained at £3,000 for many years. Any unused exemption from the previous year may be brought forward and utilised during the following year. The annual exemption cannot be carried forward for more than one year, and is used after the relief for the second year. Accordingly, it is necessary to make gifts in excess of £3,000 in the second year to use any part of the previous year’s unused exemption.