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Inheritance Tax
Go to ...
inheritance tax threshold
additional main residence inheritance tax threshold
reliefs
reduced charge on gifts ...
Inheritance Tax Threshold |
|
2018-19 |
2017-18 |
Amount |
Rate |
Amount |
Rate |
Death Rate |
Up to £325,000 |
Nil |
Up to £325,000 |
Nil |
Over £325,000 |
40% |
Over £325,000 |
40% |
Lifetime Rate |
Up to £325,000 |
Nil |
Up to £325,000 |
Nil |
Over £325,000 |
20% |
Over £325,000 |
20% |
Notes
- Unused nil rate band is transferable to spouse or civil partner.
- 40% band rate is reduced to 36% where 10% or more of the net estate is left to charity.
- Chargeable lifetime transfers are initially charged at 20%.
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Additional Main Residence Inheritance Tax Threshold |
| 2018-19 |
2017-18 |
Death Rate |
£125,000 |
£100,000 |
Notes
- The main residence band was introduced on the 6th April 2017.
- It is only valid on the main residence and where the recipient of the home is a direct descendent (Children, Step-children, Grandchildren).
- This additional allowance increases the threshold to £425,000 and £850,000 for couples.
- On properties valued between £1M and £2M inheritance tax will be paid as normal on the amount above the tax-free amount.
- For properties valued more than £2M for every £2 above £2M you will lose £1 of the main residence allowance.
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Reliefs |
| 2018-19 |
2017-18 |
Annual exemption |
£3,000 |
£3,000 |
Small gifts |
£250 |
£250 |
Marriage |
Parent |
£5,000 |
£5,000 |
Grandparent |
£2,500 |
£2,500 |
Bride / Groom |
£2,500 |
£2,500 |
Other |
£1,000 |
£1,000 |
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Reduced charge on gifts 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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Click Here
to download the current tax year's abacus Tax Tables pdf booklet
Click Here to download the previous tax year's abacus Tax Tables pdf booklet
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