Do inbound links pass onto new domain if redirected?
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If I set up a website on a new domain and have the old domain 301 redirected to the new domain, do the links pointing to the old site impact the new site?
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Yes, with a correctly implemented 301 re-direction mechanism in place, your new domain will get all the link love inherited from the old domain within few weeks.
Here you go for more info:
http://support.google.com/webmasters/bin/answer.py?hl=en&answer=83105
Best regards,
Devanur Rafi.
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To add to Devanur's comment, there is a small amount of link juice leaked when passed through a 301.
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Yes my friend, it is true that there will be a small amount of link decay with 301 but as you know, this is the best solution out there for the purpose.
Best regards,
Devanur Rafi.
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Matt Cutts just said a week or two ago that 301s pass full PR and none is lost, not sure if that's true