Tax Rates >> Inheritance tax
Inheritance Tax
| Year | Amount |
|---|---|
| 2012-13 | £325,000 |
| 2011-12 | £325,000 |
The IHT threshold is to be frozen at £325,000 until 2014/15
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
Chargeable lifetime transfers are initially charged at 20%
Business Property Relief:
- Business, interest in business or qualifying shareholders in unquoted companies (includes AIM listed companies) - 100%
- Land, buildings, machinery, or plant used in a company controlled by the transferor - 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
Reduced charge on gifts made 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 |