Combined threshold maximum for married couples and civil partners
Rate of tax on balance:
Chargeable lifetime transfers
Transfers on, or within 7 years of, death
* A lower rate of 36% applies where 10% or more of a deceased person's net estate
is left to charity
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 subject to Taper Relief:
Years before death
Tax reduced by
- business or interest therein
- qualifying shareholdings in unquoted* companies
- land, buildings, machinery, or plant used by transferor's controlled company or
100% or 50%
*Unquoted companies include those listed on AIM
Most transfers between spouses and civil partners.
The first £3,000 of lifetime transfers in any tax year plus any unused balance from
Gifts of up to but not exceeding £250 p.a. to any number of persons.
Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent,
up to £2,500 by a grandparent or great grandparent, or up to £1,000 by any other
Gifts made out of income that form part of normal expenditure and do not reduce the
standard of living.
Gifts to charities, whether made during lifetime or on death.