Inheritance Tax

2016/17 2015/16
Nil-rate band* £325,000 £325,000
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 £325,000 £325,000
100% relief: businesses, unlisted/AIM companies, certain farmland and farm buildings.
50% relief: certain other business assets, e.g. farmland let before 1/9/95.
* 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.
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
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ICAEW The Chartered Institute of Taxation ACCA IPG IR