| Standard thresholds | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 |
| Nil rate band – Up to £325,000 | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Over £325,000 | 40%* | 40%* | 40%* | 40% | 40% | 40% | 40% |
Combined thresholds (for marrried couples and civil partners) # | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | |
| Nil rate band – Up to £650,000 | 0% | 0% | 0% | 0% | 0% | ||
| Over £650,000 | 40%* | 40%* | 40%* | 40% | 40% | ||
| The residence nil-rate band | £100,000 | £125,000 | £150,000 | £175,000 | £175,000 | £175,000 |
Main Exemptions
- The first £3,000 per donor of lifetime transfers in any tax year plus any unused balance from the previous year.
- Gifts of up to but not exceeding £250 per year to any number of persons.
- Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent or more remote ancestor or a party to the marriage, or up to £1,000 by any other person.
- Gifts made from income that form part of normal expenditure.
- Gifts to charities, whether made during lifetime or on death.
Main Reliefs
| Business or interest in a business | 100% |
| Qualifying shareholdings in unquoted companies | 100% |
A transfer out of shares controlling more than 50% of the voting rights in a listed company. | 50% |
| Land and buildings, plant and machinery used by transferor’s controlled company or partnership | 50% |
| Land and buildings, plant and machinery used in a business and held in a trust in which the donor has an interest in possession. | 50% |
| Agricultural property | 100% or 50% |
Please note that there are strict qualifying criteria which must be satisfied in order to take advantage of the above reliefs. Please contact us to discuss ways of planning your affairs such that you will qualify for reliefs where possible.
[1] There is no official nil rate band for couples. The bands illustrate that for couples, the unused element of a deceased person’s nil rate band can be utilized by the surviving spouse or civil partner.
[2] A lower rate of 36% applies where 10% or more of a deceased person’s net estate is left to charity and some lifetime gifts are taxed at 20%.
[3] A further nil rate band may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partner may be increased by unused nil rate bands of deceased spouses/ civil partners. However, for estates worth more than £2m, this allowance will reduce by £1 for every £2 of the excess amount.
Please contact us for further information.
