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Inheritance Tax

   
Chargeable transfers
Death rate
%
Lifetime rate
%
2011/12
£
2010/11
£
Nil
Nil
0 - 325,000*
0 - 325,000*
40
20
Over 325,000*
Over 325,000*
*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
Reliefs        
Annual exemption £3,000 Marriage - parent £5,000
Small gifts £250   - grandparent £2,500
      - bride/groom £2,500
      - other £1,000
           
Reduced charge on gifts within seven years of death
Years before death
0-3
3-4
4-5
5-6
6-7
% of death charge
100
80
60
40
20