Inheritance Tax
2020-2021
| Death Rate % | Lifetime Rate % | Chargeable Transfers £000 |
|---|---|---|
| Nil | Nil | 0-325 |
| 40 | 20 | Over 325 |
The IHT nil rate band will remain frozen at £325,000 until April 2021 and rates payable on death stay at 40% or 36% where at least 10% of the net estate assets are left to charity.
Additional nil-rate band levels will be introduced by the government when a residence is left on death to a direct descendant. This will be £100,000 in 17-18 £125,000 in 18-19 £150,000 in 19-20 and £175,000 in 20-21
Reliefs
Annual exemption £3,000
Small Gifts £250
Marriage
- parent £5,000
- grandparent £2,500
- bride/groom £2,500
- other £1,000
Reduced charge on gifts within seven years of death
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
|---|---|---|---|---|---|
| % of death charge | 100 | 80 | 60 | 40 | 20 |
If you have any questions or would like further information please call on 01527 68235
