| Inheritance Tax | 2023-24 | 2022-23 |
| Nil rate band for individuals (NRB)* | £325,000 | £325,000 |
| lifetime gifts (subject to taper relief) | 0% | 0% |
| Tax on death | 40% | 40% |
| Lower rate on death when 10% of estate goes to charity | 36% | 36% |
| Residence nil rate band (RNRB)** | £175,000 | £175,000 |
| * Passed to surviving spouse or civil partner. ** £175,000 per person allowance for married couples and civil partners when their main residence is passed down to children after their death. | ||
| Main exempt lifetime gifts | ||
| Recurring annual gifts out of surplus income | unlimited | |
| Annual gifts out of capital (with one year carry forward if unused) | £3,000 | |
| Small gifts (per recipient) | £250 | |
| Parental gift on marriage | £5,000 | |
| Grandparent or party to marriage | £2,500 | |
| Other gifts on marriage (per donor) | £1,000 | |
| Business Property Relief | ||
| Shares in unquoted companies (including USM/AIM stocks) | 100% | |
| Shares in quoted companies | ||
| Shareholding up to 50% | NONE | |
| Shareholding over 50% | 50% | |
| Unincorporated business or interest in a business | 100% | |
| Land, buildings, plant and machinery used in the deceased’s business/company | 50% | |
| Taper Relief on lifetime gifts | ||
| less than 3 years | 40% | |
| 3 to 4 years | 32% | |
| 4 to 5 years | 24% | |
| 5 to 6 years | 16% | |
| 6 to 7 years | 8% | |
| More than 7 years | 0% | |
| No tax is due on any gifts you give if you live for 7 years after giving them unless the gift is part of a trust. This is known as the 7-year rule. If you live less than 7 years after giving the gift taper relief applies. | ||
