Inheritance tax

[DK123]

I've read the information online on the Gov.uk website but I'm still a bit confused.

I understood that a spouse didn't have to pay inheritance tax, but other beneficiaries of a will do. I was then speaking to my DD who seemed to think that spouses do have to pay inheritance tax.

The situation is that my DSis has recently been widowed. Her late DH's estate is to be divided between my DSis (his wife) and his DSon from a previous marriage.

Does anyone know what the situation would be? The solicitor who drew up the will had said that as the widow, my DSis was not liable for IHT, but the DSon would be.

Depends on the size of the estate but spouse normally not.

Depends on the size of the estate but spouse normally not.

@LIZS thank you. If it's quite a large estate is it different? That could be the case here

Any gifts to spouse are exempt from IHT. Doesn't matter how large the estate is.

You should always get professional advice for a taxable estate.

@Collaborate thank you for replying - so I'm right in thinking what goes to my DSis (widow) wouldn't be taxed, but what goes to the DSon is subject to tax?

yes.

Yes but the estate only has to pay IHT on amount above £325k not counting any bit of the estate left to spouse.
So if a will said "wife gets £5 million, my child gets £325,001"
then the IHT due is 40% of £1, i.e. 40p.
The allowance is more in some circs (leaving a house to a child for example)

@itwasaluckybuyonxxxebay that's a really clear way of putting it, thank you very much!

above £325k not counting any bit of the estate left to spouse.

There are further reliefs in property left to a direct descendant which increases the IHT free amount from £325k to £500k approx

https://www.gov.uk/inheritance-tax/passing-on-home