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Tax tables 2008/09

Inheritance Tax

		2008/09	2007/08
Nil-rate band*		£312,000	£300,000
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:	100% relief: businesses, unlisted/AIM companies, certain farmland/buildings
50% relief:	certain other business assets

*Up to 100% of the unused proportion of a deceased spouse's/civil partner's nil-rate band can be claimed on the surviving spouse's/civil partner's death after 8 Oct 2007

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

© Copyright 12 March 2008, subject to Finance Act 2008. For information only. Always seek professional advice before acting.