Will

[dedalus]

Hello,

If a spouse has 650000 pounds and decides to leave 500k of this to his son after his death, would tax be payable on this?
If instead he left it all to his wife there would be no tax payable is that correct?

thanks

[maths]

If a spouse has 650000 pounds and decides to leave 500k of this to his son after his death, would tax be payable on this?

Assuming the spouse has not been married before then the spouse has a nil rate band of £325,000 (assuming no lifetime gifts). Thus, the excess of £650,000 over £325,000 (ie £325,000) subject to IHT at 40%.


If instead he left it all to his wife there would be no tax payable is that correct?

[maths]

Not sure why a bit missing!

If instead he left it all to his wife there would be no tax payable is that correct?

Correct.

I assume above that all are UK domiciled (broadly, British).

[Lee Young]

Remember that if a spouse is "only" left £150k of £650K then he or she would probably be able to bring a successful claim (for more) againt the estate under the Inheritance (Provision for Family and Dependats) Act 1975.