Wrigley Partington

Chartered Accountants & Business Advisors

Inheritance Tax

Tax and accountancy
 2017-182016-17
Nil rate band* £325,000 £325,000
*Unused amount available to spouse or civil partner on second death    
Rate of tax on balance    
- chargeable lifetime transfers 20% 20%
- transfers on, or within, 7 years of death 40% 40%

For deaths on or after 6 April 2012, a lower rate of IHT of 36% will apply where 10% of a deceased person's net estate is left to charity

 
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. This may then be reduced:
Years before death: 0-3 3-4 4-5 5-6 6-7
Tax reduced by 0% 20% 40% 60% 80%>
 
Main Exemptions
1. Most transfers between spouses
2. The first £3,000 of lifetime transfers in any tax year (husand and wife each have own exemption) plus an unused balance from previous year
3. Gifts of up to but not exceeding £250 p.a. to any number of persons
4. Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
5. 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
6. Gifts to charities, whether made during lifetime or on death

 

Address

Wrigley Partington Chartered Accountants

Sterling House

501 Middleton Road

Chadderton, Oldham

OL9 9LY