The Financial Consultancy UK Limited - Independent Financial Advice you can Trust

						2008/09	2007/08

Nil-rate band*						£312,000	£300,000
Rate of tax on excess						40%	40%
Lifetime transfers to and from certain trusts						20%	20%
Overseas domiciled spouse/civil partner exemption						£55,000	£55,000
100% relief: businesses, unlisted/AIM companies, certain farmland/buildings
50% relief: certain other business assets used by qualifying businesses

*Up to 100% of the unused proportion of a deceased spouse's/civil partner's nil-rate band can be claimed on the surviving spouse's/civil partner's death after 8 Oct 2007

Reduced tax charge on gifts within 7 years of death

Years before death	0-3	3-4	4-5	5-6	6-7
% of death tax charge	100	80	60	40	20

Annual exempt gifts	£3,000 per donor			£250 per donee