Can anybody help me? This situation is not mine, but somebody else who is indignant that he is right and I am wrong. Will not tell you who thinks what, will tell you after!!
Imagine there is a husband, wife and child. The husband dies first and leaves the house to the wife, and this house is the same value as the inheritance tax allowance, (presently £300,000). Say just before he died the husband had made suubstantial gifts to the son would these gifts be subject to IHT due to it being a PET? ie does the IHT allowance include the spousal exempt gift to the wife of the house or is this separate?
Exciting stuff yes? .