Inheritance Tax

INHERITANCE TAX
  17/18 18/19
Nil-rate band* £325,000 £325,000
Residence nil-rate band* £100,000 £125,000
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
* The unused proportion of a deceased spouse’s/civil partner’s nil-rate band(s) can be claimed on the survivor’s death 

†Subject to 50% taper for estates above £2,000,000

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

 

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ICAEW The Chartered Institute of Taxation ACCA IPG