Inheritance tax

IHT may be payable when an individual's estate is worth more than the IHT nil rate band when they die.  

Lifetime (20%) and death (40%) transfers between UK domiciled spouses are exempt from IHT.  

A further nil rate band of £175,000 may be available in relation to current or former residences. 

The IHT threshold available on death may be increased for surviving spouses as there may have been a nil rate band not used, or not fully used, on the previous death.  

There are reliefs for some business and farming assets which reduce their value for IHT purposes.  IHT may also be payable on gifts made in an individual's lifetime but within seven years of death.  Some lifetime gifts are exempt.  

Transfers of assets into trust made in an individual's lifetime may be subject to an immediate charge but at lifetime rates.  

There are also charges on some trusts.  

Threshold Standard nil rate band: £325,000

Reliefs for lifetime gifts:

Annual Exemption: £3,000  

Small Gifts: £250  

Marriage: Depends:

Parents: £5,000

Grandparents: £2,500

Other: £1,000