Inheritance Tax

Data 2008 / 2009

2008/09 (£)

2007/08 (£)

Nil Rate Band (NRB) or Taxable Threshold

312,000

300,000

Rates of Inheritance Tax

NRB

Chargeable lifetime gifts where in excess of the NRB

20%

On death where in excess of the NRB

40%

Exemptions

Total annual gifts (for each donor)*

3,000

Small gifts (for each donee)

250

Gifts made from surplus income

Unlimited

In consideration of marriage

Gift by a parent

5,000

Gift by a grandparent

2,500

Gift by any other person

1,000

Gifts made to individuals and certain types of trust are potentially exempt, provided the donor survives for seven years. If they die within that period taper relief (below) is available if the gift is taxable.

Complete years

% charged to IHT

100%

80%

60%

40%

20%

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.

For further information, please email us on accountants@mitchells.org or call us on +44 (0) 1242 260066.

Mitchells Chartered Accountants, 41 Rodney Road, Cheltenham
Gloucestershire, GL50 1HX
Tel: +44 (0) 1242 260066 Fax: +44 (0) 1242 263707

For further information, please email us on accountants@mitchells.org

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