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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 transfers20%20%
Transfers on, or within 7 years of, death40%40%
Reduced Rate36%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 death0 - 33-44-55-66-7
Tax paid40%32%24%16%8%


Main Reliefs

Business Property%
Business or interest therein100%
Qualifying shareholdings in unquoted* companies100%
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 from50%
Agricultural property50% or 100%

* Unquoted companies include those listed on AIM

Resource Type