Inheritance Tax |
|
|
2008-09 |
2007-08 |
| Standard threshold |
|
£312,000 |
£300,000 |
| Combined threshold maximum for married couples and civil partners |
|
£624,000 |
£600,000 |
| Rate of tax on balance: |
|
|
|
|
|
| Chargeable lifetime transfers |
|
20% |
20% |
| Transfers on, or within 7 years of, death |
|
40% |
40% |
| All lifetime transfers not covered by exemptions and made within 7 years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then reduced: |
| Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
| Tax reduced by |
0% |
20% |
40% |
60% |
80% |
|
Main Exemptions
- Most transfers between spouses and civil partners
- The first £3,000 of lifetime transfers in any tax year plus any unused balance from the previous year
- Gifts of up to but not exceeding £250 p.a. to any number of persons
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living
- Gifts in consideration of marriage/civil partnership of up to £5,000 by a parent, £2,500 by a grandparent, or £1,000 by any other person
- Gifts to charities, whether made during lifetime or death
| |
|
|
|
|
