Inheritance Tax
| |
2010/11 |
2009/10 |
| Nil-rate band* |
£325,000 |
£325,000 |
| Rate of tax on excess |
40% |
40% |
| Lifetime transfers to and from certain trusts |
20% |
20% |
Exemption for overseas domiciled spouse/civil partner
|
£55,000 |
£55,000 |
| 100% relief: businesses, unlisted/AIM companies, certain farmland/buildings |
50% relief: certain other business assets |
|
| Reduced 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 |
| Annual exempt gifts: |
£3,000 per donor |
£250 per donee |
| |
| * Up to 100% of the unused proportion of a deceased spouse's/civil partner's nil-rate band can be claimed on the surviving spouse’s/civil partner’s death after 8 October 2007 |
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