Budget 2008

Inheritance Tax

Cumulative transfers on death

Other chargeable lifetime transfers

50% of death rate.

* 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.
† May be carried forward 1 tax year and used only after subsequent year exemption applied.
‡ Restricted to £55,000 where the transferor but not the transferee is domiciled in the UK.
§ Detailed conditions apply.

Business property relief*

• Relief available in respect of transfers during lifetime and on death†.
• 100%relief available in respect of the gifting of:
• unquoted shares in a trading company
• securities in an unquoted trading company controlled by the transferor
• quoted shares or securities in a trading company controlled by the transferor
• a business or an interest therein.
• 50%relief available in respect of land, buildings, plant or machinery used by the transferor’s trading company or a trading partnership in
  which he is a partner.
• Two year minimum holding period required‡

Agricultural property relief*

• Relief available in respect of transfers during lifetime and on death†.
• 100%relief available in respect of the gifting of agricultural land with vacant possession or subject to an agricultural tenancy taken out after 1 September 1995.
• 50%relief available in respect of other interests in land.
• To qualify for relief land must be occupied for at least 2 years or owned for at least 7 years‡.

* Complex rules apply.
† Asset (or replacement asset if certain conditions are met) must still be held on death of donor, if within 7 years of a lifetime gift, for relief to be available.
‡ Replacement asset rules may apply.