INHERITANCE TAX
| Death rate | 2000/2001 | 1999/2000 |
| 0% | 1-234,000 pounds | 1-231,000 pounds |
| 40% | over 234,000 pounds | over 231,000 pounds |
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 becomes 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 pounds |
| Annual gifts per donor | 3,000 pounds |
| Small gifts per donee not exceeding | 250.00 pounds |
| Marriage gifts by: | |
| – Parent | 5,000 pounds |
| – Other ‘relative’ | 2,500 pounds |
| – Other | 1,000 pounds |
| 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.