IHTM22041 - Quick succession relief: summary

Quick succession relief (QSR) is designed to reduce the burden of Inheritance Tax (IHT) where an estate taxable on death includes assets received within the previous five years under an earlier transfer on which tax was (or becomes) payable.

There is a similar relief on lifetime charges (IHTM22092) on the termination of a qualifying interest in settled property. There is no comparable relief on lifetime transfers of unsettled property.

QSR is given by reducing the tax payable on the death estate. The reduction is calculated by reference to

• the amount of tax on the earlier chargeable transfer (IHTM04027)
• the benefit to the deceased on that transfer, and
• the period between that transfer and the death.

IHT400

If the taxpayer is claiming a deduction for QSR they must complete Boxes 10 to 17 of the form IHT400 Calculation. They should also have included a form IHT415 or, if the administration of the earlier estate has been completed, used the additional information boxes on pages 15 and 16 of the IHT400 (IHTM10045) to show

• The name of the earlier deceased
• Their date of death
• And if known, the IHT reference number.

Even if not claimed, if the information on the file shows that it is clearly due, you should give relief. An indicator of a possible QSR is where an IHT400 includes a substantial estimated figure for an interest in an earlier deceased’s residuary estate.

IHTA/S141 governs the treatment of QSR.