From | 2016/17 | 2015/16 |
---|---|---|
Nil rate band | £325,000 | £325,000 |
Tax paid on legacies on death | 40% | 40% |
Tax paid if at least 10% of net estate is left to charity on death | 36% | 36% |
Gifts made up to seven years before death (see lifetime gifts) | 40% | 40% |
Lifetime transfers to most trusts (note 5) | 20% | 20% |
Reduced tax charge on gifts up to seven years before death | |||||
---|---|---|---|---|---|
Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
Percentage of IHT death charge payable | 100% | 80% | 60% | 40% | 20% |
Lifetime gifts between individuals (‘potentially exempt transfers’) are only charged to IHT if the donor dies within seven years of the gift.
Amount of relief | Conditions |
---|---|
£3,000 per tax year | Amount per donor; unused exemption can can be carried forward one year |
£250 per tax year | De minimis amount per recipient |
Unlimited | Regular gifts out of surplus income |
Unlimited | To UK domiciled spouse or civil partner |
£325,000 | To non-domiciled spouse/civil partner |
£5,000 | From parent of party to marriage (see note) |
£2,500 | From party to marriage or from remoter ancestor (see note) |
£1,000 | From any other person (see note) |
Must be made to one or both parties to a marriage in consideration of that marriage. These rules apply equally to those entering a civil partnership.
Amount of relief | Property and conditions |
---|---|
100% | All shareholdings in unquoted trading companies, an unincorporated business or interest in such a business |
50% | Controlling shareholding in quoted company, land and buildings used by transferor’s company or partnership |
100% | Agricultural value of qualifying farmland and buildings |
In all cases the property must have been owned for at least two years, and other conditions apply.
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