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Page 15 of 31
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 |
- grandparent or other direct lineal ancestor
|
2,500 |
- between the parties to the marriage
|
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
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