Tax Rates >> Inheritance tax

Inheritance Tax


Year Amount
2013-14 £325,000
2012-13 £325,000


The IHT threshold is to be frozen at £325,000 until 2014/15

For deaths after 9th October 2007, a transfer of any unused nil rate band is available from former deceased spouses and civil partners

Amounts above the threshold are taxed at 40%

Most transfers between spouses and civil partners are exempt

Chargeable lifetime transfers are initially charged at 20%

Business Property Relief:

Other Reliefs:



Reduced charge on gifts made 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