Question Author
Hi Factor...
Funnily enough I've just spoken to a "Tax" friend...
For those interested, the calculation is as follows...
The NRB is actually �650,000 (�325k x 2 - since last years budget, a spouse passes his NRB to surviving spouse)
This is offset against the PETs in date order, oldest first (which is rather unfair!) to leave �250,000 betwen 4 and 5 years old - 60% taper = �150,000. This is added to the current estate value of �200,000 and the total taxed at 40%, which equals �140,000 IHT due!
Thanks for the posts
Jerry