Inheritance tax

Inheritance tax rates and allowances.

Call 02476 251333 / 01926 888865 or email accts@leigh-christou.co.uk

IHT may be payable when an individual's estate is worth more than the IHT nil rate band when they die.

Lifetime and death transfers between UK domiciled spouses are exempt from IHT.

A further nil rate band of £175,000 may be available in relation to current or former residences.

The IHT threshold available on death may be increased for surviving spouses as there may have been a nil rate band not used, or not fully used, on the first death.

There are reliefs for some business and farming assets which reduce their value for IHT purposes.

IHT may also be payable on gifts made in an individual's lifetime but within seven years of death.

Some lifetime gifts are exempt.

Transfers of assets into trust made in an individual's lifetime may be subject to an immediate charge but at lifetime rates.

There are also charges on some trusts.

Threshold

Standard nil rate band: £325,000

Rates

Rate %
Lifetime rate 20
Death rate 40
Death rate if sufficient charitable legacies made 36

Reliefs for lifetime gifts

Annual Exemption: £3,000

Small Gifts: £250

Marriage/civil partnership: The amount of relief depends on who the gift is from...

Gift from Amount (£)
Parent 5,000
Grandparent 2,500
Other spouse/civil partner 2,500
Other 1,000

Reduced charge on gifts within seven years of death

Years before death % of death charge
0-3 100
3-4 80
4-5 60
5-6 40
6-7 20
celebrating-40.png
xero-logo.jpg Sage Accountant Partner ACCA Quality Checked ACCA Approved Employer The Academy of Experts Accredited Expert gba-2020.png quickbooks.png
About our team

Leigh Christou Limited was established as a firm of Accountants in 1983 converting to a Limited Liability Partnership in 2010 and today, we continue to build on our enviable reputation for providing excellent advice and first class service to our business and personal clients alike.

Learn more

Contact Details

Please call:
02476 251333 / 01926 888865

Leigh Christou Limited, Leofric House, Binley Road, Gosford Green, Coventry, West Midlands CV3 1JN

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

Leigh Christou Ltd are registered as auditors and are regulated for a range of investment business activities in the United Kingdom by the Association of Chartered Certified Accountants. Audit Register No. 8000853

Leigh Christou Ltd is registered in England. Company No. 8829664. Registered office: Leofric House, Binley Road, Coventry CV3 1JN.

© 2025 Leigh Christou Limited. All rights reserved. powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.