Inheritance Tax (IHT)

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Inheritance Tax (IHT)

Standard thresholds	2016/17	2017/18	2018/19	2019/20	2020/21
Nil rate band - Up to £325,000	0%	0%	0%	0%	0%
Over £325,000	40%	40%	40%	40%	40%

Combined Thresholds for married couples & Civil Partners

Threshold	2016/17	2017/18	2018/19	2019/20	2020/21
Nil rate band - Up to £650,000	0%	0%	0%	0%	0%
Over £650,000	40%	40%	40%	40%	40%
Residence nil-rate band	£0	£100,000	£125,000	£150,000	£175,000

Main Exemptions

The first £3,000 per donor of lifetime transfers in any tax year plus any unused balance from previous year.
Gifts of up to but not exceeding £250 per year 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 more remote ancestor or a party to the marriage, or up to £1,000 by any other person.
Gifts made from income that form part of normal expenditure.
Gifts to charities, whether made during lifetime or on death

Main Reliefs

Details	Rates
Business or interest in a business	100%
Qualifying shareholdings in unquoted companies	100%
A transfer out of shares controlling more than 50% of the voting rights in a listed company.	50%
Land and buildings, plant and machinery used by transferor's controlled company or partnership	50%
Land and buildings, plant and machinery used in a business and held in a trust in which the donor has an interest in possession.	50%
Agricultural property	100% or 50%

Please note that there are strict qualifying criteria which must be satisfied in order to take advantage of the above reliefs. Please contact us to discuss ways of planning your affairs such that you will qualify for reliefs where possible.

[1] There Is no official nil rate band for couples. The bands illustrate that for couples, the unused element of a deceased person’s nil rate ban can be utilized by the surviving spouse or civil partner.

[2] A lower rate of 36% applies where 10% or more of a deceased person’s net estate is left to charity and some lifetime gifts are taxed at 20%.

[3] A further nil rate band may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partner may be increased by unused nil rate bands of deceased spouses/ civil partners. However, for estates worth more than £2m, this allowance will reduce by £1 for every £2 of the excess amount.

Disclaimer : This website and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the
authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or
guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information without this website.

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We are pro-active and easily accessible accountants and inheritance tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

Get further information on inheritance tax planning and advice from the following pages;

IHT

Inheritance Tax (IHT)

Income Tax Rates

CGT Rates