 TAX
DATA INFORMATION
Inheritance Tax
| |
2010/11 |
2009/10 |
| Standard threshold |
£325,000 |
£325,000 |
| Combined threshold maximum for married couples and civil partners |
£650,000 |
£650,000 |
| |
|
|
| Rate of tax on balance |
|
|
| Chargeable lifetime transfers |
20% |
20% |
| Transfers on or within
7 years of death |
40% |
40% |
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. Tax attributable to such transfers is then reduced:
Charge on Gifts Within 7 Years of Death
| Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
| Tax Reduced by (%) |
0 |
20 |
40 |
60 |
80 |
Main Exemptions
- Most transfers between spouses and civil partners
- The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year
- Gifts of up to but not exceeding £250 p.a. to any number of
persons
- Gifts made out of income that form part of normal expenditure
and do not reduce the standard of living
- Gifts in consideration of marriage to bride and/or groom as
follows: up to £5,000 by a parent, £2,500 by a grandparent, or
£1,000 by any other person
- Gifts to charities, whether made during lifetime or on death
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