Iht on 1.3m

[tlugz]

Hello all, I am married and together her we own a house worth 800k and also am a landlord of a commercial property(shop only) worth 500k. I have a will where if I die my share of the house goes to my kids(3 children). I was thinking of offloading some of my assets to my children so I can avoid paying inheritance tax and was wondering what would be the best way to do this.
Any help would be grately appreciated please,
Thank you.

[GlobalTaxAdviser]

There is no IHT if the assets are passed to to the wife (as per the Will) whatever the value of the Estate. When the wife dies the value of the IHT exemption will be 650K.

If you did give the house to the kids and you didn't survive 7 years (after three years it is tapered) then IHT will be due. The added problem is a chance of conflict between the wife and the kids (if says the kinds want to sell the home and the wife doesn't).

Other potential issues could be gift with reservation of benefit if you live in the home (or your wife lives in the home when the husband dies) when it is gifted to the children

There maybe CGT issues but rollover relief probably will be available on the business. Likewise Business Property Relief there would be no IHT on gifts. If it is a family home then there would be no CGT due to Private Residence Relief

I certainly would advice taking professional advice on such an important matter and possibly change the will depending on the advice you receive.

[LozaACCS]

It appears that you hold the family home as tenants in common.
I would agree that gifting the family home to the children during lifetime may not be sensible, I would however doubt from the details supplied (you describe yourself as the landlord) whether relief for IHT would be available nor CGT hold over relief.