| 2011/12 | 2010/11 | |
| Standard threshold | £325,000 | £325,000 |
| Combined threshold maximum for married couples and civil partners | £650,000 | £650,000 |
| Rate of tax on balance: | ||
| Chargeable lifetime transfers Transfers on, or within 7 years of, death |
20% 40% |
20% 40% |
All lifetime transfers not covered by exemptions and made within 7 years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then reduced:
|
Years before death
|
0-3
|
3-4
|
4-5
|
5-6
|
6-7
|
|
Tax reduced by
|
0%
|
20%
|
40%
|
60%
|
80%
|
| Main Reliefs | |
| Business property: | |
| – business or interest therein | 100% |
| – qualifying shareholdings in unquoted* companies | 100% |
| – land, buildings, machinery, or plant used by transferor’s controlled company or partnership | 50% |
| Agricultural property | 50% or 100% |
*Unquoted companies include those listed on AIM
Main Exemptions
- Most transfers between spouses and civil partners.
- The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.
- Gifts of up to but not exceeding £250 p.a. to any number of persons.
- Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent, or up to £1,000 by any other person.
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
- Gifts to charities, whether made during lifetime or on death.