| 2009/10 | 2008/09 | |
|---|---|---|
| £ | £ | |
| Nil rate band | 325,000 | 312,000 |
| Exemption for overseas domiciled spouse/ civil partner | 55,000 | 55,000 |
| Annual exemption per donor | 3,000 | 3,000 |
| Exemption on small gifts per donee | 250 | 250 |
| Wedding gift exemption: Child | 5,000 | 5,000 |
| Wedding gift exemption: Grandchild | 2,500 | 2,500 |
| Wedding gift exemption: spouse | 2,500 | 2,500 |
| Wedding gift exemption: Other | 1,000 |
1,000 |
In 2010/11 nil rate band will increase to £350,000
| 2009/10 | 2008/09 | |
|---|---|---|
| % | % | |
| Transfers over nil rate band: Death | 40 | 40 |
| Transfers over nil rate band: Lifetime | 20 | 20 |
Reduction in charge to inheritance tax for gifts made within seven years of death
| 2009/10 | 2008/09 | |
|---|---|---|
| Years prior to death | % | % |
| Less than 3 | 0 | 0 |
| Between 3 and 4 | 20 | 20 |
| Between 4 and 5 | 40 | 40 |
| Between 5 and 6 | 60 | 60 |
| Between 6 and 7 | 80 | 80 |
