CW Accountancy
New shop front
in Frome

Frome Museum
A collection of
local history

Established in the heart of Frome town centre since 1983

2021/22
  • IHT may be payable when an individual's estate is worth more than the IHT nil rate band when they die.
  • Lifetime and death transfers between UK domiciled spouses are exempt from IHT.
  • For 2021/22, a further nil rate band of £175,000 may be available in relation to current or former residences.
  • The IHT threshold available on death may be increased for surviving spouses as there may have been a nil rate band not used, or not fully used, on the previous death.
  • There are reliefs for some business and farming assets which reduce their value for IHT purposes.
  • IHT may also be payable on gifts made in an individual's lifetime but within seven years of death.
  • Some lifetime gifts are exempt.
  • Transfers of assets into trust made in an individual's lifetime may be subject to an immediate charge but at lifetime rates.
  • There are also charges on some trusts.

IHT rates and nil rate band 2021/22 and 2020/21

IHT nil rate £325,000
Lifetime rate 20%
Death rate 40%
Death rate if sufficient charitable legacies made 36%

IHT reliefs for lifetime gifts

Annual exemption £3,000
Small gifts £250
Marriage
- parent £5,000
- grandparent £2,500
- other £1,000

IHT - reduced charge on gifts within seven years of death

Years before death % of death charge
0-3 100
3-4 80
4-5 60
5-6 40
6-7

20

Frome Museum

A collection of
local history

Cheap Street

Has a stream running
down the middle

Catherine Hill

A host of fabulous Independent shops

Gentle Street

Poldark was filmed
on location here

CW Accountancy

New shop front
in Frome