Quick Succession Relief

Question 1

When is QSR used?

Answer 1

When an estate includes an asset that was recently inherited which means that IHT may be paid twice on the same asset in a short period of time

Question 2

When is QSR available?

Answer 2

It’s available to reduce the IHT liability where the estate was increased in the five years before death by a transfer which itself gave rise to an IHT liability

Question 3

What HMRC form claims QSR?

Answer 3

IHT400

Question 4

How is Quick succession relief calculated?

Answer 4

After any reliefs, exemptions and the NRB had been deducted from the deceaseds estate.

QSR is then applied to reduce the tax liability and calculated using the following formula:

Reduction in tax liability = IHT paid previously £ x % x
Increase in estate £/increase in estate £ - IHT paid previously £

Question 5

What are the % amounts relevant to Quick succession relief.

Answer 5

If death within:
1 year 100% can be claimed
2 years 80%
3 years 60%
4 years 40%
5 years 20%