Inheritance Tax

2003-2004

2002-2003

Personal Relief

Free of tax up to
Tax on excess
Transfers to and from certain trusts
Overseas domiciled spouse exemption

£255,000
40%

20%

£55,000

£250,000
40%

20%

£55,000

Business Property and Agricultural Reliefs

A business or interest in a business (including a partnership share)

Transfers of unquoted shareholdings*

Transfers of a controlling shareholding in fully quoted companies, land, buildings, machinery or plant used in business of company or partnership

100%

100%

50%

100%

100%

50%

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 charge

100%

80%

60%

40%

20%

Annual gifts exemption¤

£3,000 per donor, £250 per donee