2019/20 Inheritance Tax Rates
Posted on April 08, 2019

This is a summary of the latest rates and bands for inheritance tax

 

2019/2020

2018/2019

Nil-rate band *

£325,000

£325,000

Residential nil-rate band *

£150,000 **

£125,000 **

Rate of tax on excess

40%

40%

Rate if at least 10% of net assets left to charity

36%

36%

Lifetime transfers to and from certain trusts

20%

20%

Overseas domiciled spouse/civil partner exception

£325,000

£325,000

*Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band can be claimed on the survivor’s death

**Subject to 50% taper for estates above £2,000,000

Annual exempt gifts of: £3,000 per donor £250 per donee

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





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