Inheritance

Inheritance tax 2008-2009 2007-2008
Personal Relief

Free of tax up to*
Tax on excess
Transfers to certain trusts
Overseas domiciled spouse exemption



£312,000
40%
20%
£55,000



£300,000
40%
20%
£55,000

Annual gifts exemption

£3,000

£3,000

Gifts to charities

Exempt

Exempt

Small gifts to same person

£250

£250

Marriage/ civil partnership gifts by:

Parent
/party to marriage / civil partnership

Other person

£5,000

£2,500

£1,000

 £5,000

£2,500

£1,000

* From 09.10.07 a claim may be made for deceased spouse/civil partner’s unused nil rate band.

Business Property Relief

A business or interest in a business (including a partnership share)

Transfers of unquoted shareholdings(including AIM shares)

Transfers out of a controlling shareholding in fully quoted companies, land, buildings, machinery or plant used in company or partnership




100%



100%



50%




100%



100%



50%

Reduced tax charge on gifts within 7 years of death
Years before death

0-3

3-4

4-5

5-6

6-7
% of inheritance tax payable 100% 80% 60% 40% 20%