Inheritance Tax
| 2014/15 | 2013/14 | ||||||||||||||||||||||||
| Nil-rate band* | £325,000 | £325,000 | |||||||||||||||||||||||
| Rate of tax on excess | 40%** | 40%** | |||||||||||||||||||||||
| Lifetime transfers to and from certain trusts | 20% | 20% | |||||||||||||||||||||||
| Exemption for overseas domiciled spouse/civil partner | £325,000 | £325,000 | |||||||||||||||||||||||
| 100% relief: businesses, unlisted and AIM companies, certain farmland and farm buildings. | |||||||||||||||||||||||||
| 50% relief: certain other business assets, e.g. farmland let pre-1/9/95. | |||||||||||||||||||||||||
| Reduced tax charge on gifts within 7 years of death | |||||||||||||||||||||||||||
| Years before death: | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 | ||||||||||||||||||||||
| % of death tax charge: | 100 | 80 | 60 | 40 | 20 | ||||||||||||||||||||||
| Annual exempt gifts of: |
£3,000 per donor |
£250 per donee | |||||||||||||||||||||||||
| * Up to 100% of the unused proportion of a deceased spouse's/civil partner's nil-rate band can be claimed on the survivor's death. | |||||||||||||||||||||||||||
| ** 36% where at least 10% of net estate left to charity. | |||||||||||||||||||||||||||
