Finance Act 1975

Values not exceeding £1,000

2 (1) Transfers of value made by a transferor in any one year are exempt to the extent that the values transferred by them (calculated as values on which no tax is payable) do not exceed £1,000.

(2) Where those values (if any) fall short of £1,000, the amount by which they so fall short shall, in relation to the next following year, be added to the £1,000 mentioned in sub-paragraph (1) above ; and where they exceed £1,000 the excess—

(a) shall, as between transfers made on different days, be attributed, so far as possible, to a later rather than an earlier transfer; and

(b) shall, as between transfers made on the same day, be attributed to them in proportion to the values transferred by them.

(3) In this paragraph " year " means the period beginning with 27th March 1974 and ending with 5th April 1974, and any subsequent period of twelve months ending with 5th April.

3 (1) In relation to the period beginning with 27th March 1974 and ending with 5th April 1974 and the period of twelve months ending with 5th April 1975, paragraph 2 above shall have effect as if for the references to £1,000 there were substituted references to whichever of the following is the greater—

(a) £1,000, and

(b) the aggregate value of gifts made by the transferor in that period and qualifying for small gifts relief from estate duty.

(2) For the purposes of this paragraph a gift qualifying for small gifts relief from estate duty is a gift which would by virtue of section 59(2) of the [1910 c. 8.] Finance (1909-10) Act 1910 or section 33 of the [1949 c. 47.] Finance Act 1949 or section 6 of the [1949 c. 15 (N.I.).] Finance Act (Northern Ireland) 1949 have been excluded from the property passing on the donor's death for the purposes of estate duty if he had died immediately after making the gift.