Inheritance Tax

Data 2008 / 2009

	2008/09 (£)	2007/08 (£)
Threshold (Nil rate band)	£312,000	£300,000

Rates of Inheritance Tax
Up to NRB	0%	0%
Chargeable lifetime gifts where in excess of the NRB	20%	20%
On death where in excess of the NRB	40%	40%

Exemptions
Total annual gifts (for each donor)*	3,000	3,000
Small gifts (for each donee)	250	250
Gifts made from surplus income	Unlimited	Unlimited

In consideration of marriage
Gift by a parent	5,000	5,000
Gift by a grandparent	2,500	2,500
Gift by any other person	1,000	1,000

Gifts made to individuals and certain types of trust are potentially exempt, provided the donor survives for seven years. If they die within that period taper relief (below) is available if the gift is taxable.

Complete years	% charged to IHT
0	100%
1	100%
2	100%
3	80%
4	60%
5	40%
6	20%
7	0%

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.

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