PETs and nil rate band

[PensionerToBe]

I understand that if someone gifted £500k and survived 7 years there would be no IHT payable on the gifted amount.

In that situation does the nil rate band get reinstated after 7 years so that it could be applied against the remaining estate / transferred to a spouse?

Thanks

[AGoodman]

Basically, yes.

If somebody dies, you look at the gifts made in the prior seven years and the NRB is applied to them first. If a gift was made prior to that seven year period then it would be ignored.