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The facelift around 2003 has the six speed transmission and generally looks sharper with a new grille and rear lights, it also has more wood in the cabin as it replaced the brushed aluminium.  Many things to look out for, cam belt replacement is a must, new radiator to prevent transmission failure, suspension can cost a lot of money when it goes wrong, rust above the chrome door trims is not uncommon and the exhaust is not stainless so needs to be solid. The engine is generally bomb proof if its been serviced properly. Steering wheel motors should work in both directions, ie, in and out, up and down. That's for starters!  I think the very last models are in the higher tax bracket.

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The Acre has covered it... Just bought a 2005 Ls430 after many years with a 1998 Ls400 - both wonderful cars both purchased relatively cheaply (compared to as new prices) and would highly recommend.  The one thing to remember is that the purchase price may be low but proper maintenance/repairs will not be so cheap and also these are thirsty cars.  Just be prepared for that and then go enjoy one of the finest cars around. 

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Here are some of things u should check:
 
Make sure it has a full or at least a good service history which includes the cambelt change.
 
On driving the ride should be quite smooth comfortable with no noises or creaks from the suspension.
 
Gearbox changes should not be noticeable
 
Upon inserting key the steering should tilt and retract - test and make sure the mechanism works as motors are very expensive
 
Braking should be quite and smooth - if you get a groaning noise when coming to stop that’s a sign of cheap aftermarket brake pads - they will need replacing.
 
Check colour of gearbox oil it should be red with no smell of burning.
 
Check all electrics work
 
Check the Sat Nav works - there have been reports of some failures
 
Check the sound system properly to ensure no blown door speakers or woofer
 
Check the air suspension works  - when the switch is flicked the car should rise about at inch slowly - and the compressor does not make any noises
 
Check the bonnet and boot struts hold the bonnet
 
Check the car has the correct Toyota red coolant
 
Check for rust around the doors near the plastic trim and around the boot area
 
Check rear quarter panel glass for cloudiness - this indicates the glazing has failed - mainly of pre facelift
 
Ask if the cabin filter has ever been changed - these are often over looked.
 
Check the bonnet pull works as it should - some of them fail
 
Check if rear aircon works - these fail due to pipe rust underneath
 
If the car has ACC - check it works - there has been reports of failure due to water ingress
 
Check the condition of the exhaust especially the back boxes - it is not stainless like the LS400
 
Check the door seals - due to age the outer edge starts to disintegrate
 
Check toolkit is present
 
Check if the radiator has been changed - if not factor in a new radiator as a precaution
 
Make sure there are no warning lights lit in the dash
 
Ideally you want 3 remote keys
 
Check the car has a matching set of tyres and wether they are branded or not - this should give an indication wether the car has been pampered or neglected
 
Before driving off make sure you have the say nav code and locking wheel nut key.
 
Check the spare wheel, jack and brace is present - this is also an opportunity to check the boot floor for water ingress
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