What is Quick Succession Relief for inheritance tax?

Full answer

QSR stops the same wealth being taxed heavily twice in quick succession. It applies where a person dies having inherited assets on which inheritance tax was paid in the previous five years - for example, someone inherits from a parent, then dies themselves soon after. Without relief, the family could pay 40% IHT twice on largely the same money. The relief is a credit against the tax due on the second death, based on the IHT paid on the first transfer and how much time has passed. The percentage taper is: 100% if the second death is within one year of the first; 80% within two years; 60% within three years; 40% within four years; and 20% within five years. After five years no relief is available. The relief is also proportionate to the value that passed and was actually taxed, so it reflects the tax attributable to the inherited assets rather than the whole estate. How it fits 2026/27: the standard nil-rate band remains GBP 325,000 and the residence nil-rate band GBP 175,000, with IHT at 40% (or 36% where 10% or more of the net estate is left to charity). QSR is applied after working out the second estate's IHT, reducing the bill rather than the taxable estate. Worked example in outline: if GBP 40,000 of IHT was paid on assets a person inherited, and that person dies 18 months later, the relief is 80% of the appropriate proportion of that GBP 40,000, credited against the new IHT due. The exact calculation depends on values and the time gap, so the figures here are illustrative. Estimate the headline IHT exposure on each estate first with the inheritance tax calculator, then factor in any QSR credit.

Try the calculator