Inheritance Tax - Rates and Allowances
Inheritance Tax Threshold
| Year | Amount |
|---|---|
| 2010/11 | £325,000 |
| 2011/12 | £325,000 |
Charges over £325,000 are taxed at 40%
Lifetime chargeable transfer at half death rate, i.e. 20%
Businees poperty relief of 100% for all share holdings in qualifying unquoted trading companies and for most unincorporated trading businesses, agricultural property relief at 100% for qualifying holdings of agricultural land.
* Annual exemption for lifetime gifts £3,000
* Small gifts - annual amount per donee £250
Tapering relief applies to reduce the tax on transfers for survivership within 7 years of death. The reduction in tax is:
| Percentage | Years |
|---|---|
| 20% | 3 -4 Years |
| 40% | 4 - 5 Years |
| 60% | 5 - 6 Years |
| 80% | 6 - 7 Years |