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Applying ‘Taper Relief’ to gifts

Inheritance Tax is charged on gifts at 40 per cent. But if the person died between three and seven years of making a gift, you can apply what's known as 'Taper Relief' to the amount of Inheritance Tax due to reduce the amount payable.

Taper Relief reductions

Time between the date the gift was made and the date of death

Taper relief percentage applied to the tax due

3 to 4 years

20%

4 to 5 years

40%

5 to 6 years

60%

6 to 7 years

80%

 

Inheritance Tax thresholds - present day back to 18 March 1986

From

To

Threshold/nil rate band

6 April 2009 5 April 2015 £325,000
6 April 2008 5 April 2009 £312,000
6 April 2007 5 April 2008 £300,000
6 April 2006 5 April 2007 £285,000
6 April 2005 5 April 2006 £275,000
6 April 2004 5 April 2005 £263,000
6 April 2003 5 April 2004 £255,000
6 April 2002 5 April 2003 £250,000
6 April 2001 5 April 2002 £242,000
6 April 2000 5 April 2001 £234,000
6 April 1999 5 April 2000 £231,000
6 April 1998 5 April 1999 £223,000
6 April 1997 5 April 1998 £215,000
6 April 1996 5 April 1997 £200,000
6 April 1995 5 April 1996 £154,000
10 March 1992 5 April 1995 £150,000
6 April 1991 9 March 1992 £140,000
6 April 1990 5 April 1991 £128,000
6 April 1989 5 April 1990 £118,000
15 March 1988 5 April 1989 £110,000
17 March 1987 14 March 1988 £90,000
18 March 1986 16 March 1987 £71,000