Tax Information Inheritance Tax
Please select an option:
- Income Tax
- Corporation Tax
- Value Added Tax
- Vehicle Benefits
- NI Contributions
- Pension premiums
- Charitable giving
- Some useful rates
- Government tax spending
- Capital gains Tax
- Main capital Allowances
- Inheritance Tax
- Mileage Allowances
- Key dates and deadlines
- Profit related pay
- Savings and investments
- Stamp Duties
| 2003/04 | 2002/03 | |
|---|---|---|
| Nil rate band to | £255,000 | £250,000 |
| Rate of tax on balance | 40% | 40% |
| Chargeable lifetime transfers | 20% | 20% |
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. This may then be reduced by taper relief.
| Years before death | 0–3 | 3–4 | 4–5 | 5–6 | 6–7 |
|---|---|---|---|---|---|
| Tax reduced by | 0% | 20% | 40% | 60% | 80% |
| Business property: | |
|---|---|
| business or interest therein | 100% |
| qualifying shareholders in unquoted * companies | 100% |
| land, buildings, machinery, or plant used by transferor’s controlled company or partnership | 100% |
| business or interest therein | 50% or 100% |
* Unquoted companies include those listed on AIM
Main Exemptions
- To UK domiciled spouse — exempt.
- To non UK domiciled spouse — £55,000.
- Annual exemption – per donor — £3,000.
- Small gifts per donee — £250 p.a.
- Gifts in consideration of marriage to bride and/or groom of: up to £5,000 by a parent, up to £2,500 by a grandparent, or up to £1,000 by any other person.
- Normal gifts out of income — no limit.
- Charities — exempt
Did you know?
The return to the Government remains constant year-on-year at £2.4 billion. However, the available reliefs and exemptions 'cost' the Government almost £10 billion each year.