| Aggregate chargeable value | 2008/09 | 2007/08 |
| upto £312,000 (£300,000) * | 0% | 0% |
| upto £312,000 (£300,000) | 40% | 40% |
* The unused percentage of the nil rate band following the death of the first spouse, can be claimed by the executors of the second spouse to give them up to a maximum of two nil rate bands to use on the second death.
Reduced charge on life time gifts within seven years of death.
| Years Between Gift And Death | Rates |
| 0-3 | 100% (100%) |
| 3-4 | 80% (80%) |
| 4-5 | 60% (60%) |
| 5-6 | 40% (40%) |
| 6-7 | 20% (20%) |
Note: If a lifetime gift is chargeable when made, the tax already paid at half death rates cannot be reduced.
Exemptions to Inheritance Tax:
Anything given to husband or wife
Gifts not exceeding £3,000 (£3,000) in any tax year
Wedding gifts of upto
£5,000 (£5,000) for each child
£2,500 (£2,500) to each grandchild
£1,000 (£1,000) to any other