Inheritance Tax
Inheritance tax may be due on certain lifetime transfers and on a person’s estate after death where the chargeable assets have a value in excess of the nil-rate band. There are several exemptions and reliefs available.
Inheritance tax charges also apply to some trusts.
Inheritance Tax
Inheritance Tax | 2022/23 | 2023/24 |
---|---|---|
Nil-rate band | £325,000 | £325,000 |
Residence nil-rate band | £175,000 | £175,000 |
Rate of tax on excess | 40% | 40% |
Reduced rate (estates leaving 10%+ to charity) | 36% | 36% |
Chargeable lifetime transfers | 20% | 20% |
IHT reliefs for lifetime gifts
IHT reliefs for lifetime gifts | |
---|---|
Annual Exemption | £3000 |
Small Gifts Exemption | £250 per person per tax year |
Marriage exemptions – parent | £5000 |
Marriage exemptions – grandparent | £2500 |
Marriage exemptions – bride/groom | £2500 |
Marriage exemptions – other | £1000 |
There are many complexities when considering IHT liabilities and we would be happy to guide you through aspects relevant to your personal circumstances.