NEWS

Inheritance Tax

November 1, 2021


Inheritance Tax



NEWS

Inheritance Tax


22/23

21/22

Nil-rate band*

£325,000

£325,000

Residence nil-rate band*

£175,000

£175,000

Rate of tax on excess

40%

40%

Rate if at least 10% of net estate left to charity

36%

36%

Lifetime transfers to and from certain trusts

20%

20%

Overseas domiciled spouse/civil partner exemption

£325,000

£325,000

100% relief: businesses, unlisted/AIM companies, certain farmland/buildings

50% relief: certain other business assets, e.g. farmland let before 1/9/95

Annual exempt gifts of:                                  £3,000 per donor                            £250 per donee

Tapered tax charge on lifetime gifts within 7 years of death

Years between gift and death

0–3

3–4

4–5

5–6

6–7

% of death tax charge

100

80

60

40

20

* Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band and/or residence nil-rate band can be claimed on the survivor’s death

† Estates over £2,000,000: the value of the residence nil-rate band is reduced by 50% of the excess over £2,000,000

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PLEASE NOTE: By the very nature of this type of information the details of tax law might have changed since they were published, so contact your Barnes Roffe partner before acting on any matter contained in these documents.