Inheritance Tax on Joint Accounts

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My mum and I have a joint account. I understand that upon her death I will have to pay inheritance tax on half the balance. Is that correct?

Also, as recently I have spent a considerable sum from that joint account, (first moving it into my account to make my transaction easier) will that spent amount be taken into account for inheritance tax?

xylophone

http://www.hmrc.gov.uk/inheritancetax/how-to-value-estate/joint-property.htm
Valuing other jointly owned assets
Joint bank or building society accounts
The deceased person may have provided all the money in a bank account and the account may be in joint names just for convenience. In that case, you need to include in your valuation all the money that was in the account on the date the person died.
If another person had provided some of the money in the account, you only include the amount that the deceased person provided
If the money in the account is actually your mother's, then this transfer into your sole account could be regarded as a gift for IHT purposes.
See http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

soulsaver

Will her estate exceed £325,000 (2012 IHT threshold) Under that is free of inheritance tax. If it's over that it s worth seeking more advice there are many ways to mitigate IHT.

xylophone

Will her estate exceed £325,000 (2012 IHT threshold)

There may be a spouse exemption as well.
http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm