Budget 2004 - Back to Menu


Inheritance Tax


Charges on or after 6th April 2004 Rates % Charges between 6th April 2003 and 5th April 2004
0 - £263,000 NIL 0 - £255,000
Above £263,000 40% Above £255,000
 
Lifetime chargeable transfers at half the death rate, ie 20%.
Business property relief of 100% for all shareholdings in qualifying unquoted trading companies and for most unincorporated trading businesses; agricultural property relief at 100% for qualifying holdings of agricultural land.
Annual exemption for lifetime gifts £3,000.
Small gifts - annual amount per donee £250.
 
Reduced tax charge on transfers within 7 years of death
Years before death Percentage of death rates
0 - 3 100%  
3 - 4 80%  
4 - 5 60%  
5 - 6 40%  
6 - 7 20%  
Over 7 NIL