Inheritance Tax

Death
rate

Lifetime
rate

Chargeable transfers
2018/19 and 2017/18

Nil Nil 0 - £325,000*
40% 20% Over £325,000*

*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   - 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