Tax Rates

0% on first £325,000 – the Nil Rate Band *

40% on everything above £325,000

36% if testator leaves 10% or more to charity from 6.4.12

20% on lifetime transfers to and from certain trusts

*Since 8th October 2007, the unused proportion of a deceased spouse/civil partner’s nil rate band can be claimed on the survivor’s death in most cases. For more info: http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm

Tax Reliefs

100% Business/Agricultural Property Relief on businesses, unlisted/AIM companies, certain farming assets

50% Business Property Relief on certain other business assets

20%-100% Taper Relief on potentially exempt transfers between 3 years and 7 years prior to death where the cumulative total exceeds the nil rate band.

Main Exempt Transfers

Gifts to UK domiciled spouse No limit

Gifts to a non-UK domiciled spouse £55,000

Gifts to charities and political parties No limit

Annual Exemption per donor £3,000

Small Gifts per donee £250

Normal expenditure out of income No limit

Potentially exempt transfers Exempt if survive 7 years after the gift

Gifts in consideration of marriage: £5,000 each parent

For further information please contact Outi Hubbard, Sarah Ellis

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm


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