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Welcome to our bulletin page. This contains latest news that may be of interest to you!
Inheritance Tax
Estates and lifetime gifts
Not everyone pays Inheritance Tax on death. It only applies if the taxable value of your estate when you die is above £300,000 (2007-2008 tax year).
This is only an outlined summary and if you want to plan for inheritance tax properly then contact us for an initial discussion.
There are also a number of exemptions which allow you to pass on amounts (during your lifetime or in your will) without any Inheritance Tax being due, for example:
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if your estate passes to your husband, wife or civil partner and you are both domiciled in the UK there is no Inheritance Tax to pay even if it’s above the £300,000 threshold.
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most gifts or transfers made more than seven years before your death are exempt (however proposals in the 2006 Budget significantly affect the Inheritance Tax treatment of transfers into most types of trust - another important reason to contact us for professional up to date advice)
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certain other gifts, such as wedding gifts and gifts in anticipation of a civil partnership up to £5,000 (depending on the relationship between the giver and the recipient), gifts to charity, and £3,000 given away each year are also exempt.
Inheritance Tax threshold and rates
Where Inheritance Tax is due on a deceased's estate it's charged at the following rates:
| Inheritance Tax |
2007-2008 Tax Year |
| Taxable value of your estate above which it is charged |
£300,000 |
| Rate at which it is charged |
40% |
Stamp Duty Fees for Property Purchases from 23rd March 2006
Potential property purchasers are very often interested in the current rate of stamp duty charged on the purchase price of the property they are buying. Merricks Solicitors detail current rates in the table below:
| Rate |
Land in disadvantaged areas - Residential
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All other land in the UK - Residential |
All other land in the UK - Non-residential
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| 0% |
£0 - £150,000 |
£0 - £125,000 |
£0 - £150,000
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| 1% |
Over £150,000
-£250,000 |
Over £125,000
-£250,000 |
Over £150,000
-£250,000
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| 3% |
Over £250,000
-£500,000
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Over £250,000
-£500,000 |
Over £250,000
-£500,000
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| 4% |
Over £500,000 |
Over £500,000 |
Over £500,000
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