Rates and Allowances - Inheritance Tax

Inheritance tax threshold

Death Rate %	Lifetime Rate %	Chargeable transfers
		2008-09 £'000	2007-08 £'000
Nil	Nil	0 - 312*	0 - 300*
40	20	Over 312*	Over 300*

* Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.

Reliefs

Annual Exemption	£3,000	Marriage - Parent	£5,000
Small Gifts	£250	Marriage - Grandparent	£2,500
		Marriage - Bride/Groom	£2,500
		Marriage - Other	£1,000

Reliefs 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