See: Estate planning checklist
| 2011/12 | 2010/11 | 2009/10 | 2008/09 | |
| Nil-rate band* | £325,000 | £325,000 | £325,000 | 312,000 |
| Lifetime rate | 20% | 20% | 20% | 20% |
| Death rate | 40% | 40% | 40% | 40% |
| *Increased by any unused portion of a deceased spouse or civil partner's nil rate band | ||||
- Transfers between UK domiciled spouses/civil partners are exempt.
- If the transferee is non-UK domiciled only the first £55,000 is exempt.
From 2012/13 it is proposed that if you donate 10% to charity and your IHT rate decreases by 10% too to 36%.
| Exemptions for gifts of business* assets | |
| An interest in a business, unlisted shares & AIM shares | 100% |
| Agricultural property | 100% |
| Assets used by the transferor's company or ex-partnership | 50% |
* Relevant business property owned for at least two years prior to transfer/death.
| Exemptions for gifts of non business assets | |
| Annual exemption | £3,000 |
| Small gift exemption | £250 |
| Gift on marriage/civil partnership: | |
| Parent | £5,000 |
| Grandparent | £2,500 |
| Others | £1,000 |
| Exemption for regular gifts out of income | No limit |
Other gifts are taxable if the transferor dies within 7 years of making the gift. The death charge is calculated as follows:
| Reduced charge on other gifts made within seven years of death | |
| Years before death | % of death charge |
| 0 -3 | 100 |
| 3-4 | 80 |
| 4-5 | 60 |
| 5-6 | 40 |
| 6-7 | 20 |
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