Quick Succession Relief (QSR) IHT Calculator
Calculate Quick Succession Relief (QSR) on inheritance tax. If you inherit assets and die within 5 years, QSR reduces the IHT on those same assets in your estate.
Quick Succession Relief (QSR) Calculator
If you received a gift or inheritance on which IHT was paid, and you die within 5 years, Quick Succession Relief (IHTA 1984 s.141) reduces the IHT charged on those same assets in your estate.
The value of the estate/gift you received
The IHT actually paid by the deceased's estate on the transfer to you
Frequently Asked Questions
What is Quick Succession Relief?
Quick Succession Relief (QSR) is an inheritance tax relief under IHTA 1984 s.141 that reduces IHT on the second death when an individual inherits property, pays IHT in the first estate, and then dies within 5 years. It prevents double taxation of the same assets in rapid succession.
How is QSR calculated?
QSR = (IHT paid on first transfer) × (relief percentage based on years between deaths) × (net benefit ÷ transfer value). The relief % is: 100% (0-1 year), 80% (1-2 years), 60% (2-3 years), 40% (3-4 years), 20% (4-5 years). After 5 years, no relief is available.
Why is QSR reduced by the net benefit fraction?
QSR is based on the IHT actually borne — if IHT reduced the amount you received, the net benefit (what you actually got) is less than the transfer value. The fraction (net benefit ÷ transfer) ensures relief is proportionate to what you actually inherited.
Does QSR apply to chargeable lifetime transfers?
QSR applies when the first transfer was a chargeable transfer on which IHT was paid — this includes death estates, failed PETs (where the donor dies within 7 years), and certain lifetime transfers. It does not apply where the first transfer was entirely exempt.
Can QSR apply to both estates?
QSR only applies to the second estate (the estate of the person who received the inheritance and then died). It reduces the IHT due on the second estate. The first estate is not affected by QSR.
Does QSR apply if I inherited from a trust?
QSR can apply where property passes from a trust. The key test is whether IHT was actually charged on the property before it came to you, and that you die within 5 years. Specific trust rules may apply — take specialist advice if the first transfer involved a trust.
Is QSR automatically applied?
HMRC should apply QSR automatically when preparing the IHT assessment for the second estate, provided the first transfer details are known. However, executors should check and ensure the claim is made on form IHT400. If HMRC misses it, a formal claim may be needed.
Can QSR and Business Property Relief both apply?
Yes. If the inherited assets also qualify for Business Property Relief (BPR) in the second estate, both reliefs can apply — BPR first reduces the value charged to IHT, then QSR reduces the IHT payable on the remainder.