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 2024/25 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.