Inheritance Tax
|
Inheritance tax |
||
|
|
20/21 |
19/20 |
| Nil-rate band* | £325,000 | £325,000 |
| Residence nil-rate band*† | £175,000 | £150,000 |
| Rate of tax on excess | 40% | 40% |
| Rate if at least 10% of net estate left to charity | 36% | 36% |
| Lifetime transfers to and from certain trusts | 20% | 20% |
| Overseas domiciled spouse/civil partner exemption | £325,000 | £325,000 |
100% relief: businesses, unlisted/AIM companies, certain farmland/buildings
50% relief: certain other business assets e.g. farmland let before 1/9/95
Annual exempt gifts of: £3,000 per donor, £250 per donee
|
Tapered tax charge on lifetime gifts within 7 years of death |
|||||
| Years between gift and death | 0–3 | 3–4 | 4–5 | 5–6 | 6-7 |
| % of death tax charge | 100 | 80 | 60 | 40 | 20 |
*Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate
band and/or residence nil-rate band can be claimed on the survivor’s death
†Estates over £2,000,000: the value of the residence nil-rate band is reduced by 50% of the excess over £2,000,000