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Home Resource Centre Tax Tables Inheritance Tax

Tax Tables

Inheritance Tax

 

2017/18
£

2016/17
£

Threshold (Nil Rate Band)

325,000

325,000

Residence Nil-Rate Band*

100,000

N/A

 

 

 

Rates of Inheritance Tax

 

 

Up to NRB

0%

0%

Chargeable lifetime gifts where in excess of the NRB

20%

20%

On death where in excess of the NRB

40%

40%

 

 

 

Exemptions

 

 

Total annual gifts (for each donor)

3,000

3,000

Small gifts (for each donee)

250

250

 

 

 

In consideration of marriage

 

 

Gift by a parent

5,000

5,000

Gift by a grandparent

2,500

2,500

Gift by any other person

1,000

1,000

 

 

 

Gifts made to individuals and certain types of trust are potentially exempt, provided the donor survives for seven years. If they die within that period taper relief (below) is available if the gift is taxable.

 

 

 

Taper Relief

% charged to IHT

 

0-3 years

100%

 

3-4 years

80%

 

4-5 years

60%

 

5-6 years

40%

 

6-7 years

20%

 

Over 7 years

0%

 

 

 

 


* The residence nil-rate band is in addition to the existing nil-rate band and only available when a residence is passed on death to a direct descendent. There will be a tapered withdrawal of the additional nil-rate band for estates with a net value of more than £2 million. This will be at a withdrawal rate of £1 for every £2 over this threshold.

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