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.