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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
      2017-18 2016-17
    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 Over £325,000 20% Over £325,000 20%

    Notes

    1. Unused nil rate band is transferable to spouse or civil partner.
    2. 40% band rate is reduced to 36% where 10% or more of the net estate is left to charity.
    3. Chargeable lifetime transfers are initially charged at 20%.

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    Additional Main Residence Inheritance Tax Threshold
      2017-18
    Death Rate £100,000

    Notes

    1. The main residence band was introduced on the 6th April 2017.
    2. It is only valid on the main residence and where the recipient of the home is a direct descendent (Children, Step-children, Grandchildren).
    3. This additional allowance increases the threshold to £425,000 and £850,000 for couples.
    4. On properties valued between £1M and £2M inheritance tax will be paid as normal on the amount above the tax-free amount.
    5. 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
      2017-18 2016-17
    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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