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Business Advice
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Page 15 of 30
Budget 2005
 Inheritance Tax
Transfers on death
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Cumulative transfers
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From 6 April 2005
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From 6 April 2004
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Rate
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£
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£
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%
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1-275,000
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1-263,000
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nil
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over 275,000
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over 263,000
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40
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Transfers within seven years of death
| Years |
% of charge at death
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| 0-3 |
100
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| 3-4 |
80
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| 4-5 |
60
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| 5-6 |
40
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| 6-7 |
20
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Other chargeable lifetime transfers
50% of death rate
Main exemptions and reliefs
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£
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| Annual gifts per donor* |
3,000
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| Small gifts per donee |
250
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| Gifts in consideration of marriage |
| parent |
5,000
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| grandparent or other direct lineal ancestor |
2,500
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| between the parties to the marriage |
2,500
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| other |
1,000
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Business property relief 50% or 100%†
Agricultural property relief 50% or 100%†
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Business Advice