IHTM22041 - Quick succession relief: summary

Quick succession relief (QSR) is designed to reduce the burden of IHT where an estate taxable on death reflects the benefit of property received within the previous five years under a transfer on which tax was (or becomes) payable.

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

The relief 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.

Box 17 of the IHT400 Calculation shows whether the taxpayer has claimed any deduction for QSR. They ought also to have completed a form IHT415 ( IHTM10035) or if the administration of the earlier estate has been completed given additional information on pages 15 and 16 of the IHT400 ( IHTM10045) showing

• 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 must allow the 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.

IHTA84/S141 governs the treatment of Quick Succession Relief.