Text Box:                                              APR Legal and Financial Planning
                                                                           Estate Planning Specialists 

Inheritance tax is a tax charged on the estate of a deceased person or on assets they may have transferred whilst they were alive, after accounting for any allowances.

Inheritance Tax has been described as the “Voluntary Tax” because there are so many ways to reduce or eliminate having to pay the tax. With careful advance planning more of what you own can pass onto your family, but there are restrictions.

So often the Government make themselves beneficiaries of a deceased estate and usually they are first in line. This happens everyday and generates the Government billions of pounds each year in revenue. Last year the Government took £4.56 billion from inheritance tax alone.


Inheritance Tax Allowances


























All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then subject to a relief called “Taper Relief”. In effect any tax may be reduced over the 7 years after a gift is made

Main Exemptions

Most transfers between spouses and civil partners.


The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.


Gifts of up to but not exceeding £250 each year to any number of persons.


Gifts in consideration of marriage or civil partnership of up to £5,000 by a parent, up to £2,500 by a grandparent or great grandparent, or up to £1,000 by any other person.


Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.


Gifts to charities, whether made during lifetime or on death.


Gifts made over 7 years before death may also be exempt from inheritance tax.


Careful planning now can eliminate if not minimise Inheritance Tax



              What is Inheritance Tax ?



Go to

APR Legal and Financial Planning  Trinity house 114 Northenden Road Sale Moor M33 3HD

enquiries@aprlegal.co.uk         01625 667967

Text Box:




Standard threshold



Combined threshold maximum for married couples and civil partners



Rate of tax on balance:



Chargeable lifetime transfers

Transfers on or within 7 years of death.


40% *


40% *

* A lower rate of 36% applies where 10% or more of a deceased person's net estate is left to charity

Years before death






Tax reduced by






Main Reliefs


Business property:                                                                  Amount of relief

- business or interest therein


- qualifying shareholdings in unquoted* companies


- land, buildings, machinery, or plant used by transferor's controlled company or partnership


Agricultural property

100% or 50%

*Unquoted companies include those listed on the Alternative Investment Market