|Nil rate band (NRB)*||£325,000||£325,000|
|NRB Residential enhancement (RNRB)†*||125,000||100,000|
|Rate of tax above nil rate band**||40%||40%|
|Lifetime transfers to most trusts||20%||20%|
†RNRB is available for transfers of a main residence to direct descendents. It tapers away at the rate of £1 for every £2 of estate value above £2m.
*Up to 100% of the proportion of a deceased spouse’s/civil partner’s unused NRB and RNRB band may be claimed to increment the current NRB and RNRB when the survivor dies.
**Rate reduced to 36% if at least 10% of the relevant estate is left to charity. Unlimited exemption for transfers between spouses/civil partners, except if UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/buildings.
Reduced tax charge on gifts within 7 years before death
|Years before death||0-3||3-4||4-5||5-6||6-7|
|% of full death tax charge payable||100||80||60||40||20|
Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient.