Claim for quick succession relief

If assets are inherited twice in a five-year period, a relief may be available to reduce the inheritance tax payable.

IHT

Inheritance tax (IHT) is generally charged at 40% on the probate value of a death estate that exceeds the available nil rate band and any other allowances, e.g. the annual allowance.

An unfair position would potentially arise if the transferee died shortly after a chargeable transfer, as the assets could be subject to another charge.

Relief

Quick succession relief provides at least some protection from this scenario. It works by reducing the tax payable on the second transfer by the following formula:

QSR percentage x (value transferred on first transfer - tax paid on first transfer)/value transferred on first transfer x tax paid on first transfer.

The QSR percentage depends on how many complete years elapse between the first transfer and the death of the transferee.

Claiming

You claim relief on a Form IHT400, but you also need to include certain information on the Additional Information pages. Use our template to form the basis of this claim.