Tax Return Deadline:
31st January 2022
Inheritance Tax
Inheritance Tax Thresholds
Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who’s died.
If the estate’s value is below the threshold you’ll still need to.
If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren.
If you’re married or in a civil partnership and your estate is worth less than your threshold, any unused threshold can be added to your partner’s threshold when you die. This means their threshold can be as much as £1 million.
Inheritance Tax Rates
The standard Inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the threshold.
*Values are subject to change
Capital Gains Tax
Tax Rates – Individuals
2020-21
2021-22
Gains to basic rate limit
10%
10%
Gains above basic rate limit
20%
20%
Tax Rate – Trusts and Estates (1) Exemptions
20%
20%
Individuals, estates, etc
£12,000
£12,300
Trusts generally
£6,000
£6,150
Entrepreneurs’ Relief – Gains taxed at 10% up to lifetime limit of
£1 million
£1 million
Investors’ Relief – Gains taxed at 10% up to lifetime limit of
£10 million
£10 million
- Rates are increased by 8% for gains on residential property and carried interest.
Inheritance Tax
Inheritance Tax
2020-21
2021-22
Nil-rate band
£325,000
£325,000
Residence nil-rate band (1)
£150,000
£175,000
Rate of tax on excess
40%
40%
Chargeable lifetime transfers Annual gifts of up to £3,000 are exempt
20%
20%
- Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band can be claimed on the survivor’s death
- 36% where at least 10% of net estate left to charity
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