Inheritance Tax

						2010/11	2009/10
Nil-rate band*						£325,000	£325,000
Rate of tax on excess						40%	40%
Lifetime transfers to and from certain trusts						20%	20%
Exemption for overseas domiciled spouse/civil partner						£55,000	£55,000
100% relief: businesses, unlisted/AIM companies, certain farmland/buildings
50% relief: certain other business assets
Reduced tax charge on gifts within 7 years of death
Years before death			0-3	3-4	4-5	5-6	6-7
% of death tax charge			100	80	60	40	20
Annual exempt gifts			£3,000 per donor			£250 per donee

*Up to 100% of the unused proportion of a deceased spouse's/civil partner's nil-rate band can be claimed on the surviving spouse's/civil partner's death after 8 October 2007