Inheritance Tax
|
22/23 |
21/22 |
||||
Nil-rate band* |
£325,000 |
£325,000 |
||||
Residence nil-rate band*† |
£175,000 |
£175,000 |
||||
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 |
||||||
Tapered tax charge on lifetime gifts within 7 years of death |
||||||
Years between gift and death |
0–3 |
3–4 |
4–5 |
5–6 |
6–7 |
|
% of death tax charge |
100 |
80 |
60 |
40 |
20 |
* Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band and/or residence nil-rate band can be claimed on the survivor’s death
† Estates over £2,000,000: the value of the residence nil-rate band is reduced by 50% of the excess over £2,000,000