|Free of tax up to *||£325,000||£325,000|
|Tax on excess **||40%||40%|
|Transfers to certain trusts||20%||20%|
|Overseas domiciled spouse exemption ***||£325,000||£325,000|
|Annual gifts exemption||£3,000||£3,000|
|Gifts to charities||Exempt||Exempt|
|Small gifts to same person||£250||£250|
|Marriage/ civil partnership gifts by:|
|Grandparent / party to marriage / civil partnership||
* Frozen at this level until April 2018.
** A reduced rate of 36% applies where 10% or more of a net chargeable estate is left to charity.
** Alternatively can elect to be treated as UK domiciled for IHT purposes.
|Business Property Relief||2014-2015||2013-2014|
|A business or interest in a business (including a partnership share)||100%||100%|
|Transfers of unquoted shareholdings (including AIM shares)||100%||100%|
|Transfers out of a controlling shareholding in quoted companies, land or buildings, machinery or plant used in qualifying company or partnership||50%||50%|
|Reduced tax charge on gifts made within the seven years before death|
|Years before death||0-3||3-4||4-5||5-6||6-7|
|% of inheritance tax payable||100%||80%||60%||40%||20%|