You may have only just come across Section 7 Reports and not know what they are or who writes them. You’re in the right place. In this blog, we will...
Continue readingTax 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