TF - Inheritance tax

INHERITANCE TAX

Income tax rates

Income tax allowances

Capital gains tax

Scale benefits for vehicles

Mileage Allowance

VAT

The first £325000 of cumulative chargeable transfers are taxed at a NIL rate. Transfers above that level are taxed at death at 40% and during lifetime at 20%.

From 6 April 2012 a lower rate on death of 36% will apply where at least 10% of the deceased person's estate is left to charity.

Potentially exempt transfers within the seven years before death are taxed at the death rates but are subject to taper relief:

Years between gift	Percentage of
and death	death rate
Up to 3	100%
3-4	80%
4-5	60%
5-6	40%
6-7	20%
Over 7	nil

Exemptions

Annual exemption (per donor)	3,000
Small gifts (per donee)	250
Gifts in consideration of marriage
- parent	5,000
- grandparent/remoter ancestor	2,500
- party to the marriage	2,500
- other person	1,000

The Tax Practice (Guildford) Limited registered in England & Wales 4414698