Inheritance Tax Rates
|
Rates
|
| Death rate |
40%
|
| Lifetime rate |
20%
|
| |
|
|
|
Exemptions and reliefs
|
| |
|
|
| Annual exemption (can be carried forward one year) |
£3,000
|
| Transfers between spouses |
100%
|
| Gifts out of normal income |
100%
|
| Gifts to charities including lifetime ones |
100%
|
| Small gifts (any number) - up to |
£250 each
|
| Wedding gifts |
|
| |
Child |
£5,000
|
| |
Grandchild or remoter |
£2,500
|
| |
Other |
£1,000
|
| Business property |
|
| |
business or interest therein |
100%
|
| |
qualifying shareholders in unquoted companies including AIM |
100%
|
| |
land, buildings, machinery or plant used by transferor's controlled company or partnership |
50%
|
| Agricultural property |
50% or 100%
|
| |
|
|
|
Nil rate band
|
| |
|
up to £
|
| |
|
|
| |
15th March 1988 to 5th April 1989 |
110,000
|
| |
6th April 1989 to 5th April 1990 |
118,000
|
| |
6th April 1990 to 5th April 1991 |
128,000
|
| |
6th April 1991 to 9th March 1992 |
140,000
|
| |
10th March 1992 to 5th April 1995 |
150,000
|
| |
6th April 1995 to 5th April 1996 |
154,000
|
| |
6th April 1996 to 5th April 1997 |
200,000
|
| |
6th April 1997 to 5th April 1998 |
215,000
|
| |
6th April 1998 to 5th April 1999 |
223,000
|
| |
6th April 1999 to 5th April 2000 |
231,000
|
| |
6th April 2000 to 5th April 2001 |
234,000
|
| |
6th April 2001 to 5th April 2002 |
242,000
|
| |
6th April 2002 to 5th April 2003 |
250,000
|
| |
6th April 2003 to 5th April 2004 |
255,000
|
| |
6th April 2004 to 5th April 2005 |
263,000
|
| |
6th April 2005 to 5th April 2006 |
275,000
|
| |
6th April 2006 to 5th April 2007 |
285,000
|
|
|
6th April 2007 to 5th April 2008 |
300,000
|
|
|
6th April 2008 to 5th April 2009 |
312,000
|
|
|
from 6th April 2009 (doubled for married couples and civil partners) |
325,000
|
| |
From 9th October 2007 the unused element of a NIL-rate band may be transferred to their spouses or civil partners. This may be back-dated indefinitely.
|
|
|
Taper relief
|
| |
|
%
|
| |
|
|
| |
Death within 3 years of gift |
0
|
| |
between 3 and 4 years |
20
|
| |
between 4 and 5 years |
40
|
| |
between 5 and 6 years |
60
|
| |
between 6 and 7 years |
80
|
| |
over 7 years |
100
|
| |
|
|
|
Quick succession relief
|
| |
|
%
|
| |
|
|
| |
Period between transfers less than one year |
100
|
| |
between 1 and 2 years |
80
|
| |
between 2 and 3 years |
60
|
| |
between 3 and 4 years |
40
|
| |
between 4 and 5 years |
20
|
| |
|
|
| |
|
|
| |