Inheritance tax

IHT may be payable when an individual's estate is worth more than the IHT nil rate band when they die.

Lifetime and death transfers between UK domiciled spouses are exempt from IHT.

For 2017/18, a further nil rate band of £100,000 may be available in relation to current or former residences.

The IHT threshold available on death may be increased for surviving spouses as there may have been a nil rate band not used, or not fully used, on the previous death.

There are reliefs for some business and farming assets which reduce their value for IHT purposes.

IHT may also be payable on gifts made in an individual's lifetime but within seven years of death.

Some lifetime gifts are exempt.

Transfers of assets into trust made in an individual's lifetime may be subject to an immediate charge but at lifetime rates.

There are also charges on some trusts.

Threshold

Standard nil rate band: £325,000

Rates

Rate %
Lifetime rate 20
Death rate 40
Death rate if sufficient charitable legacies made 36

Reliefs for lifetime gifts

Annual Exemption: £3,000

Small Gifts: £250

Marriage: The amount of relief depends on who the gift is from...

Gift from Amount (£)
Parent 5,000
Grandparent 2,500
Bride/groom 2,500
Other 1,000

Reduced charge on gifts within seven years of death

Years before death % of death charge
0-3 100
3-4 80
4-5 60
5-6 40
6-7 20

Home | Contact us | Site map | Accessibility | Privacy | Help | Websites For Law Firms from CLT totalSOLUTION

Angels Solicitors LLP is a Limited Liability Partnership registered in England & Wales (Partnership Number: OC340770)

Registered address: Angels Solicitors LLP, 117/119 New Union Street, Coventry, West Midlands CV1 2NY
This Firm is authorised and regulated by the Solicitors Regulation Authority (SRA number 508759)
© 2018 Angels Solicitors LLP. All rights reserved. We use cookies on this website, you can find more information about cookies here.
lexcel.jpg conveyancing.jpg sra_logo.jpg lawsociety.jpg law.jpg warwick.jpg