Inheritance Tax
Death
|
Lifetime
|
Chargeable transfers
|
Nil | Nil | 0 – £325,000* |
40% | 20% | Over £325,000* |
*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
Reliefs |
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Annual exemption | £3,000 | Marriage | – parent | £5,000 |
Small gifts | £250 | – grandparent | £2,500 | |
– bride/groom | £2,500 | |||
– other | £1,000 |
Reduced charge on gifts within seven years of death |
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Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
% of death charge | 100 | 80 | 60 | 40 | 20 |