| Detail | 2024/2025 | 2023/2024 |
|---|---|---|
| Standard threshold | £325,000 | £325,000 |
| Residence nil rate band limit | £175,000 | £175,000 |
| Taper threshold for residence nil-rate band | £2,000,000 | £2,000,000 |
| Rate of tax on balance: | ||
| Chargeable lifetime transfers | 20% | 20% |
| Transfers on, or within 7 years of, death | 40% | 40% |
| Reduced Rate | 36% | 36% |
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then reduced:
| Years before death | 0 - 3 | 3-4 | 4-5 | 5-6 | 6-7 |
|---|---|---|---|---|---|
| Tax paid | 40% | 32% | 24% | 16% | 8% |
Main Reliefs
| Business Property | % |
|---|---|
| Business or interest therein | 100% |
| Qualifying shareholdings in unquoted* companies | 100% |
| Shares controlling more than 50% of the voting rights in a listed company | Land, buildings or machinery owned by the deceased and used in a business they were a partner in or controlled | Land, buildings or machinery used in the business and held in a trust that it has the right to benefit from | 50% |
| Agricultural property | 50% or 100% |
* Unquoted companies include those listed on AIM
Resource Type