Tax centre
Tax tables 2005-06
Inheritance Tax
| 05-06 | 04-05 | |
|---|---|---|
| Nil-rate band | £275,000 | £263,000 |
| Rate of tax on excess | 40% | 40% |
| Lifetime transfers to and from certain trusts | 20% | 20% |
| Overseas domiciled spouse exemption | £55,000 | £55,000 |
| 100% relief for businesses, unlisted and AIM companies, and certain farmland | ||
| 50% relief for certain other business assets used by qualifying businesses |
| Reduced tax charge on gifts within 7 years of death | |||||
|---|---|---|---|---|---|
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
| % of death tax charge | 100 | 80 | 60 | 40 | 20 |
| Annual exempt gifts | £3,000 per donor, £250 per donee | ||||