Commentary

I3.739 De minimis exemption

IHT, trusts and estates

I3.739 De minimis exemption

I3.739 De minimis exemption

Finally, there is a de minimis exemption where the aggregate of the pre-owned assets charges on the taxpayer in respect of a year of assessment does not exceed £5,0001. The following exchange from the Report Stage debates on the Finance Bill 2004 confirmed that an aggregate charge of £5,000 attracts no income tax, but an aggregate charge of £5,001 or more is taxable in full2.

Mr Burnett:

'Will the Paymaster General confirm whether the £5,000 a year de minimis limit operates with a slab effect, as with stamp duty? If the £5,000 a year de minimis limit is exceeded, does the whole sum come

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