Inheritance tax is a tax on chargeable transfers made by an
individual during their life and on the value of their estate on their
death. Various exemptions and reliefs are available.
The tax
is also chargeable on certain settlements.
The tax
applies to U.K. domiciled individuals on all chargeable transfers
whether or not the property is within the U.K.
Due to
various exemptions, tax applicable to life time transfers is generally
not payable. However, if it is payable it is currently paid at half
the death rate, provided the transferor does not die within seven
years of the transfer. Death within the seven years will result in
a marginal additional rate of tax.
The death
rates applicable for 2004/2005 are: