Budget 2006
| |
Inheritance Tax
| Charges on or after 6th April 2006 |
Rates % |
Charges between 6th April 2005 and 5th April 2006 |
| 0 - £285,000 |
NIL |
0 - £275,000 |
| Above £285,000 |
40% |
Above £275,000 |
| |
Lifetime chargeable transfers at half the death rate, ie 20%.
Business property relief of 100% for all shareholdings in qualifying unquoted trading companies and for most unincorporated trading businesses; agricultural property relief at 100% for qualifying holdings of agricultural land.
Annual exemption for lifetime gifts £3,000.
Small gifts - annual amount per donee £250. |
| |
| Reduced tax charge on transfers within 7 years of death |
| Years before death |
Percentage of death rates |
| 0 - 3 |
100% |
| 3 - 4 |
80% |
| 4 - 5 |
60% |
| 5 - 6 |
40% |
| 6 - 7 |
20% |
| Over 7 |
NIL |
|
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