Inheritance Tax

Nil-rate band*£325,000£325,000
Residence nil-rate band*N/A£100,000†
Rate of tax on excess
Rate if at least 10% of net estate left to charity
Lifetime transfers to and from certain trusts20%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
*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
†Subject to 50% taper for estates above £2,000,000


Annual exempt gifts £3,000 per donor£250 per donee


Tax charge on gifts within 7 years of death
Years before death0–33–44–55–66–7
% of death tax charge10080604020
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