Inheritance Tax2023-242022-23
Nil rate band for individuals (NRB)*£325,000£325,000
lifetime gifts (subject to taper relief)0%0%
Tax on death40%40%
Lower rate on death when 10% of estate goes to charity36%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 incomeunlimited
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 business100%
Land, buildings, plant and machinery used in the deceased’s business/company50%
Taper Relief on lifetime gifts
less than 3 years40%
3 to 4 years32%
4 to 5 years24%
5 to 6 years16%
6 to 7 years8%
More than 7 years0%
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.