|Single persons nil rate band||£1 – £325,000||£1 – £325,000|
|Single persons 40% band||over £325,000||over £325,000|
|Married couples or civil partnerships allowance nil rate band||£650,000||£650,000|
|Gifts to charities||Exempt||Exempt|
|Small gifts to same person||£250||£250|
|Marriage/civil partnership gifts by:|
From 6 April 2012 a reduced rate of IHT of 36% will be introduced where 10% or more of the net estate is left to charity.
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. Tax attributable to such transfers is then reduced:
|Years before death||0-3||3-4||4-5||5-6||6-7|
|Tax reduced by||0%||20%||40%||60%||80%|
|Business property relief:||2014/15||2013/14|
|Business or interest in a business and transfer if unquoted shareholdings||100%||100%|
|Transfers out of a controlling shareholding in quoted companies, land and buildings, plant and machinery used in a qualifying company or partnership||50%||50%|
- Most transfers between spouses and civil partners.
- The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.
- Gifts of up to but not exceeding £250 p.a. to any number of persons.
- Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent, or up to £1,000 by any other person.
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
- Gifts to charities, whether made during lifetime or on death.