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Budget 2009 - Personal Taxation
Inheritance Tax
Cumulative transfers on death
| After 5 April 2008 | During 2008/2009 | Rate |
|---|---|---|
| £ | £ | % |
| 1-325,0001 | 1-312,0001 | nil |
| over 325,000 | over 312,000 | 40 |
Transfers within seven years of death |
% of charge at death |
|---|---|
| 0-3 | 100 |
| 3-4 | 80 |
| 4-5 | 60 |
| 5-6 | 40 |
| 6-7 | 20 |
Other chargeable lifetime transfers
- Up to 20% of value of transfer.
| Main exemptions and reliefs | |
|---|---|
| £ | |
| Annual gifts per donor2 | 3,000 |
| Small gifts per donee per annum | 250 |
| Gifts in consideration of marriage/civil partnership | |
| - parent | 5,000 |
| - grandparent or other direct lineal ancestor | 2,500 |
| - between the parties to the marriage/civil partnership | 2,500 |
| - other | 1,000 |
| Transfers between spouses/civil partners | exemp23 |
| Normal expenditure out of income | exempt4 |
| Gifts to charities, political parties, for national purposes | exempt4 |
1 On death of surviving spouse or civil partner post 8 October 2007, may be increased by the additional percentage of nil-rate band unused on earlier death of spouse or civil partner. Special rules apply where the deceased has more than one former spouse or civil partner.
2 May be carried forward 1 tax year and used only after subsequent year exemption applied.
3 Restricted to £55,000 where the transferor but not the transferee is domiciled in the UK.
4 Detailed conditions apply.
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