2019/20	2020/21
		£	£
Inheritance tax
Single person’s nil-rate band		£1-£325,000	£1-£325,000
Single person’s 40% band		over £325,000	over £325,000
Residence nil-rate band (RNRB) – maximum (note 1)		£150,000	£175,000
Reduced rate (note 2)		36%	36%
IHT rate (for chargeable lifetime transfers)		20%	20%
Married couples or civil partnerships allowance nil-rate band		£650,000	£650,000
Gifts to charities		Exempt	Exempt
Small gifts to same person		£250	£250
General gifts – annual exemption		£3,000	£3,000
Wedding gifts from parent		£5,000	£5,000
Wedding gifts from grandparent/party		£2,500	£2,500
Wedding gifts from other person		£1,000	£1,000
Note 1: The RNRB is available in respect of a main residence given away to children (including adopted, foster or stepchildren). Any unused nil-rate band transfers to the deceased’s spouse or civil partner, even where death predates the availability of the additional threshold. It applies in addition to the existing nil-rate band (NRB) or threshold (currently £325,000) if the individual and estate meet the qualifying conditions. Note 2: The estate can pay inheritance tax at a reduced rate of 36% on some assets if you leave 10% or more of the net value to charity in your will.
Business Property Relief
Business or interest in a business and transfer if unquoted shareholdings		100%	100%