| | 2008-09 | 2007-08 |
| Standard threshold | £312,000 | £300,000 |
| Combined threshold maximum | £624,000 | £600,000 |
| for married couples and civil partners | | |
| Rate of tax on balance: | | |
| Chargeable lifetime transfer | 20% | 20% |
| Transfers on, or within 7 years of, death | 40% | 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%
| Years before death
|
0-3
|
3-4
|
4-5
|
5-6
|
6-7
|
| Tax reduced by
|
0%
|
20%
|
40%
|
60%
|
80%
|
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 the previous year
- Gifts of up to but not exceeding £250 p.a. to any number of persons
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living
- Gifts in consideration of marriage/civil partnership of up to £5,000 by a parent, £2,500 by a grandparent, or £1,000 by any other person
- Gifts to charities, whether made during lifetime or on death
PLEASE NOTE: The information contained on this page and other pages in this website is for general guidance only.
No responsibility is token for action taken or refrained from in consequence of the contents of this website.
