Inheritance Tax
| Charges on or after 6th April 2009 | Rates % |
|---|---|
| 0 - £325,000 (Nil band frozen until 2017/18) | NIL |
| Above £325,000 | 40% |
Lifetime chargeable transfers at half the death rate, i.e. 20%.
Business property relief of 100% for all shareholdings in qualifying unquoted trading companies and for most unincorporated trading businesses; agricultural property relief at 100% for qualifying holdings of agricultural land.
Annual exemption for lifetime gifts £3,000.
Small gifts up to £250 per donee per year are ignored.
Tapering relief applies to reduce the tax on transfers within 7 years of death.
The reduction in tax is 20% for survivorship of 3-4 years, 40% for 4-5, 60% for 5-6 and 80% for 6-7 years.