Inheritance Tax
| |
06-07 |
05-06 |
| Nil-rate band |
£285,000 |
£275,000 |
| Rate of tax on excess |
40% |
40% |
| Lifetime transfers to and from certain
trusts |
20% |
20% |
| Overseas domiciled spouse/civil partner
exemption |
£55,000 |
£55,000 |
| 100% relief: |
businesses, unlisted/AIM companies, and
certain
farmland/buildings |
|
|
|
| 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 |
|
|
|
