Inheritance Tax

 

 

2010/11 (£) 

2009/10 (£) 

Threshold (Nil Rate Band)

325,000

325,000

 

 

 

Rates of Inheritance Tax

 

 

Up to NRB

0%

0%

Chargeable lifetime gifts where in excess of the NRB

20%

20%

On death where in excess of the NRB

40%

40%

 

 

 

Exemptions

 

 

Total annual gifts (for each donor)*

3,000

3,000

Small gifts (for each donee)

250

250

Gifts made from surplus income

Unlimited

Unlimited

 

 

 

In consideration of marriage

 

 

Gift by a parent

5,000

5,000

Gift by a grandparent

2,500

2,500

Gift by any other person

1,000

1,000

 

 

 

Gifts made to individuals and certain types of trust are potentially exempt, provided the donor survives for seven years. If they die within that period taper relief (below) is available if the gift is taxable.

 

 

 

Complete years

% charged to IHT

 

0

100%

 

1

100%

 

2

100%

 

3

80%

 

4

60%

 

5

40%

 

6

20%

 

7

0%

 

 
 

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