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Inheritance Tax....I have a property value c£200k plus cash

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Inheritance Tax....I have a property value c£200k plus cash / other assets c £300k...total c£500k. I am not married (although this may change in the coming months). My understanding is that IHT would be levied at 40% on all amounts over £325k. Is this correct and what can I do to minimise this?
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Your are correct in your surmise over your exposure to IHT. However, the 325K limit is raised by any inter spousal or charitable bequests. As you appear intent on matrimony in the near future that is one way of minimising its effects. You can also give away moneys providing you live seven years after the gift. Gifts create a Potentially Exempt Transfer (PET) in your IHT affairs and in the event of a decease within that time frame are added back to your estate. PETs run off at a taper over seven years. I do hope that I have given you some food for thought.
Customer: replied 1 year ago.
So if I donated £x to charity and transferred £y to spouse then both those amounts would reduce the tax liability. If I do get married does that double the IHT threshold for us as a couple?
Customer: replied 1 year ago.
Have you received my additional question?
Expert:  bigduckontax replied 1 year ago.
Yes, indeed and if you bequeathed everything to your spouse there would be no IHT to pay. Each of you is entitled to 325K before IHT kicks in, you are treated separately for this tax even when you are married. A surviving spouse can inherit any unused portion of her partner's 325K making a theoretical 650K tax free. Sorry for the delay, I had a conference with builders and surveyors.
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Category: Tax
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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