Inheritance Tax
Inheritance Tax
| Categories & Thresholds | 2023/2024 | 2024/2025 |
|---|---|---|
| Rates of Tax on Death Transfers | ||
| Nil rate band | £325,000 | £325,000 |
| Residence nil rate band | £175,000 | £175,000 |
| Rate | 40%* | 40%* |
| - Lifetime transfers to and from certain trusts | 20% | 20% |
| Main Exemptions | ||
| Normal expenditure out of income | No limit | No limit |
| Transfers to - UK-domiciled spouse/civil partner | No limit | No limit |
| Transfers to - Non-UK-domiciled spouse/civil partner (from UK-domiciled spouse) | £325,000 | £325,000 |
| Transfers to - UK-registered charities | No limit | No limit |
| Annual exemption per donor | £3,000 | £3,000 |
| Small gifts exemption | £250 | £250 |
| Wedding/Civil Partnership Gifts | ||
| Wedding/civil partnership gifts by - Parent | £5,000 | £5,000 |
| Wedding/civil partnership gifts by - Grandparent | £2,500 | £2,500 |
| Wedding/civil partnership gifts by - Other person | £1,000 | £1,000 |
| Business Relief | ||
| 100% relief: businesses, unlisted/AIM companies, certain farmland/building | — | |
| 50% relief: certain other business assets | — | |
* A lower rate of 36% applies where at least 10% of deceased's net estate is left to charity.