What is the Inheritance Tax rate ?
NIL RATE BAND 2017/18 - £650,000 husband/wife or civil partners' combined allowance. All other assets taxed at 40% unless exemptions apply
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable at the rate at death. This may then be reduced by taper relief.
New Residence Nil Rate Band applies to the main property from 06/04/2017 which will give an additional allowance of up to £100,000 per married couple or civil partners on their main property.
Charge on Gifts Within 7 Years of Death
|Years before death||0 - 3||3 - 4||4 - 5||5 - 6||6 - 7|
|% of death charge||100%||80%||60%||40%||20%|
- Transfers between husband and wife and/or civil partners
- The first £3000 of lifetime transfers in any tax year
- Gifts of up to but not exceeding £250 p.a. To any number of persons
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living
- Gifts in consideration of marriage to bride and/or groom as follows: up to £5000 by a parent, £2500 by a grandparent or £1000 by any other person
- Gifts to charities whether made during lifetime or on death