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Online Resources > Tax Rates & Allowances >
Inheritance Tax
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Inheritance
Tax Thresholds |
Year |
Amount
(£) |
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2008-09 |
312,000 |
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2007-08 |
300,000 |
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The nil rate band thresholds for future years have already been announced...
2009-10 - £325,000
2010-11 - £350,000
In addition, for deaths after 9th October 2007, a transfer of any unused nil rate band is available from former deceased spouses and civil partners.
Amounts
above the threshold are taxed at 40%.
Most transfers between
spouses and civil partners are exempt.
Chargeble
lifetime transfers are initially charged at 20%.
Business Property
Relief
Business, interest in a business or
qualifying shareholders
in unquoted (inlcuding AIM listed companies) - 100%
Land, buildings, machinery, or plant used in a company controlled by the transferor or partnership - 50%
Agricultural property
- 50% or 100%
Other
Reliefs:
Annual gifts of up to £3000 per donor are exempt.
Small
gifts £250
Marriage gifts...
- parent £5,000
- grandparent £2,500
- bride/groom £2,500
- other £1,000
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| Reduced
charge on gifts within seven years of death: |
Years
before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
%
of death charge |
100 |
80 |
60 |
40 |
20 |
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