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Budget 2007
Inheritance Tax
Cumulative transfers
| After 5 April 2007 | From 6 April 2005 - 5 April 2007 | Rate |
| £ | £ | % |
| 1-300,000 | 1-285,000 | nil |
| over 300,000 | over 285,000 | 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 |
Chargeable lifetime transfers
50% of death rate
Main exemptions and reliefs
| £ | |
| Annual gifts per donor1 | 3,000 |
| Small gifts per donee per annum | 250 |
| Gifts in consideration of marriage/civil partnership | |
|
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% or 100%3 |
| Agricultural property relief | 50% or 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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