From: "Andy Pandy" 
Newsgroups: uk.finance
Subject: Re: 'New' IHT rules is no concession.
Date: Thu, 11 Oct 2007 13:09:12 +0100
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"Tim"  wrote in message
news:ZcCdnZZE24hBkZPanZ2dnUVZ8vudnZ2d@bt.com...
> "Andy Pandy" wrote
> > ... for instance re-marriages.
> >
> > AIUI, if a widow, whose first husband died leaving her
> > everything, then remarries, she now has a double IHT
> > threshold but only half of it could be passed to her new
> > husband if she dies before him, and also if her new husband
> > dies before her then none of his allowance could pass to her...
>
> Is that last bit also true if her first husband only
> passed (say) *half* of his allowance to her -- or
> could her new husband also pass half of his NRB?

There's a cap of 100% increase to your threshold from late spouses. So
if the first husband used up half his allowance, then she now has 1.5x
the allowance. Her new husband can then pass her a maximum of 0.5 the
allowance to her, and similarly she can only pass him 1x the
allowance, in both cases other arrangements will need to be made for
the spare 0.5 allowance otherwise it'll be lost. AIUI.

--
Andy