Inheritance Tax
Updated Budget 2007
| Bands |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
2007-2008 |
| Nil Rate Band |
£255,000 |
£263,000 |
£275,000 |
£285,000 |
£300,000 |
| Rate on Excess |
40% |
40% |
40% |
40% |
40% |
| Exemptions & Gifts |
2003-2004 |
2004-2005 |
2005-2006 |
2006-2007 |
2007-2008 |
| Annual exemption per donor |
£3,000 |
£3,000 |
£3,000 |
£3,000 |
£3,000 |
| Small gifts to any person |
£250 |
£250 |
£250 |
£250 |
£250 |
| Wedding gifts by parents |
£5,000 |
£5,000 |
£5,000 |
£5,000 |
£5,000 |
| Wedding gifts by grandparents |
£2,500 |
£2,500 |
£2,500 |
£2,500 |
£2,500 |
| Wedding gifts by any other person |
£1,000 |
£1,000 |
£1,000 |
£1,000 |
£1,000 |
Taper Relief
Transfers within 7 years of death are taxed on their value at the date of the gift, but on the death rate scales applying at the date of death, subject to the following taper relief:-
| Years between gift & death |
% of charge |
| 0-3 |
100 |
| 4 |
80 |
| 5 |
60 |
| 6 |
40 |
| 7 |
20 |
