Inheritance Tax |
| |
05-06 |
04-05 |
| Nil-rate band |
£275,000 |
£263,000 |
| Rate of tax on excess |
40% |
40% |
| Lifetime transfers to and from certain
trusts |
20% |
20% |
| Overseas domiciled spouse exemption |
£55,000 |
£55,000 |
100% relief for
businesses, unlisted and AIM companies,
and certain farmland |
|
|
| 50% relief for certain other business
assets used by qualifying businesses |
|
|
|
| Reduced
tax charge on gifts within 7 years of death |
| Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
| % of death tax charge |
100 |
80 |
60 |
40 |
20 |
| Annual exempt gifts |
£3,000 per donor,
£250 per donee |
|
| © Copyright March 2005, subject to Finance Act |
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