Quick Q

[Generix]

Ok this has probably been asked a million times before, but this is not one of the boards I check with any regularity;

Combined assets are house @ c£400k and cash/investments @ c£100k and the rest of random items owened wouldn't come above £10k.

Grandparents are married and have arrangements which pass all assets from one to the other on death (assume this is an exempt transfer between spouses).

My question is with regards to the thresholds of IHT (currently £325k or thereabouts). When one grandparent dies, and an exempt transfer is made, does the 325k nil rate band allowance also pass over?

So i.e. when both pass away is the total assets @ nil £650k (2 x £325k)?

Therefore in this situation I assume no IHT planning required (assets below £650k)?

Thanks in advance

[tax_schmax]

Yes. The exempt transfer causes the allowance to be unused. The allowance (or unused percentage of the allowance) therefore is available to the surviving spouse.

[Generix]

Many many many thanks for the quick response