Death rate 2000/2001 1999/2000
0%    £1-234,000 £1-231,000
40%   over £234,000 over £231,000

Lifetime gifts
Certain lifetime gifts (eg. to discretionary trusts) taxable at half of death rates

Where gift within 7 years of death, Tax of death rates become payable, reduced as follows and credit given on tax paid on lifetime gift:

Years   0-3             3-4            4-5            5-6            6-7
Reduction in tax    0%            20%          40%          60%           80%

Main exemptions

Spouse- Both UK domiciled (or transfer non-domiciled )  Unlimited 
Non  domiciled spouse- UK domiciled transfer or     £55,0000
Annual gifts per donor  £3,000
Small gifts per donee not exceeding       £250.00
Marriage gifts by:   
– Parent £5,000
– Other ‘relative’   £2,500
– Other              £1,000
Charities and political parties unlimited

Business and Agricultural Relief
Interest in business, farms or shares held for more then two years inqualifying unlisted companies:100%
Assets or trust property used by qualyifing company or business farmland( if let before 1.9.95 ), or by controlling holding in listed company:50%

Payment Date:
6 months after Death/Chargeable transfer, or for lifetime gifts made6 April to 30 Sept, due 30 April  in following year.

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