Inheritance Tax

Chargeable Transfers
Death Rate
%
Lifetime Rate
%
2006/07
£’000
2005/06
£’000
Nil
Nil
0 - 285
0 - 275
40
20
Over 285
Over 275
Reliefs
Annual exemption £3,000 Marriage - parent £5,000
Small gifts £250 - grandparent £2,500
- bride/groom £2,500
- other £1,000
Reduced charge on gifts within seven years of death
Years before death
0-3
3-4
4-5
5-6
6-7
% of death charge
100
80
60
40
20