Define: Annual Exemption

UK Accounting Glossary

Definition: Annual Exemption


Quick Summary of Annual Exemption


Annual Exemption is an amount that can be gifted and is not subject to inheritance tax legislation. This amount currently stands at £3000 each tax year.




What is the dictionary definition of Annual Exemption?

Dictionary Definition


Annual exemption is a transfer of funds that could be considered a gift under inheritance tax legislation, which currently stands at £3000 per annum and is not subject to taxation under inheritance tax.

Civil partners and spouses are entitled to their individual annual exemption.

The £3000 amount has not changed since 6 April 1981, however up to this amount can be carried over to the next financial year only, and can be used to cover any gifts that are made in the next financial year.


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Full Definition of Annual Exemption


The most common method for minimising a liability to capital gains tax is to ensure that the annual exemption is fully utilised wherever possible.


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Annual Exemption FAQ's



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https://payrollheaven.com/define/annual-exemption/
Modern Language Association (MLA):
Annual Exemption. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 19, 2019 https://payrollheaven.com/define/annual-exemption/.
Chicago Manual of Style (CMS):
Annual Exemption. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/annual-exemption/ (accessed: November 19, 2019).
American Psychological Association (APA):
Annual Exemption. PayrollHeaven.com. Retrieved November 19, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/annual-exemption/

Definition Sources


Definitions for Annual Exemption are sourced/syndicated from:


This glossary post was last updated: 4th February 2019.