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Budget 2006
Inheritance Tax
Transfers on death
|
Cumulative transfers
|
||
|
From 6 April 2006
|
From 6 April 2005
|
Rate
|
|
£
|
£
|
%
|
|
1-285,000
|
1-275,000
|
nil
|
|
over 285,000
|
over 275,000
|
40
|
Transfers within seven years of death
| Years |
% of charge at death
|
| 0-3 |
100
|
| 3-4 |
80
|
| 4-5 |
60
|
| 5-6 |
40
|
| 6-7 |
20
|
Other chargeable lifetime transfers
50% of death rate
Main exemptions and reliefs
|
£
|
|
| Annual gifts per donor1 |
3,000
|
| Small gifts per donee |
250
|
| Gifts in consideration of marriage | |
|
5,000
|
|
2,500
|
|
2,500
|
|
1,000
|
| Transfers between spouses/civil partners |
exempt2
|
| Normal expenditure out of income |
exempt3
|
| Gifts to charities, political parties, for national purposes |
exempt3
|
| Business property relief |
50%/100%3
|
| Agricultural property relief |
50%/100%3
|
Business property relief 50% or 100%2
Agricultural property relief 50% or 100%2
1 May be carried forward 1 tax year and used only after subsequent year exemption applied
2 Restricted to £55,000 where the transferor but not the transferee is domiciled in the UK.
3 Detailed conditions apply
The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.
This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.
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