Inheritance Tax

Chargeable transfers
Death rate
%
Lifetime rate
%
20010/11
£’000
2009/10
£’000
Nil
Nil
0 - 325*
0 - 325*
40
20
Over 325*
Over 325*
*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