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.
|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|
|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.