Inheritance Tax
| 2015/16 | 2014/15 | |
|---|---|---|
| Nil rate band* | £325,000 | £325,000 |
| Rate of tax above nil rate band** | 40% | 40% |
| Lifetime transfers to and from certain trusts | 20% | 20% |
Unlimited exemption for transfers between spouses/civil partners, except if UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/buildings.
100% Agricultural Property Relief (APR) available on agricultural value of qualifying farmland/buildings.
BPR or APR available at 50% on certain property.
* Up to 100% of the proportion of a deceased spouse’s/civil partner’s unused nil rate band may be claimed to increment the current nil rate band when the survivor dies.
** Rate reduced to 36% if at least 10% of the relevant estate is left to charity.
Reduced tax charge on gifts within 7 years before death
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
| % of full death tax charge payable | 100 | 80 | 60 | 40 | 20 |
Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient.