• 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.

• For 2017/18, a further nil rate band of £100,000 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 previous death.

• There are reliefs for some 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.

IHT rates and nil rate band 2017/18 and 2016/17

IHT nil rate
Lifetime rate
Death rate  40%
Death rate if sufficient charitable legacies made  36%

IHT reliefs for lifetime gifts

 Annual exemption  £3,000
 Small gifts  £250
 - parent
 - grandparent
 - bride/groom
 - other

IHT - 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



This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.