Quick Succession Relief (IHT) UK 2026: How QSR Reduces Tax on Inherited Property

Quick succession relief (QSR) is a statutory IHT relief under s.141 IHTA 1984 that reduces the inheritance tax payable on a person's estate when that same estate (or part of it) has already been subject to IHT within the previous five years. The problem it addresses is double taxation: if A dies leaving property to B, and B then dies before the property has passed out of B's hands, the same asset can attract IHT twice in quick succession — once on A's death (as part of A's estate) and again on B's death (as part of B's estate). Without QSR, the full IHT rate would apply to both chargeable events. QSR reduces the IHT payable on B's death by a percentage of the IHT that was charged on A's estate — the percentage depends on how soon after A's death B dies. The maximum relief (100%) applies where B dies within one year of A. The relief tapers to nil if B dies more than five years after A.

The QSR percentage is determined by the time elapsed between the first and second death. Under s.141 IHTA 1984 the sliding scale is: 0–1 year: 100% relief; 1–2 years: 80% relief; 2–3 years: 60% relief; 3–4 years: 40% relief; 4–5 years: 20% relief; more than 5 years: no relief. The 'years' are measured from the date of the first chargeable event to the date of the second. The relief is calculated as: QSR = Percentage × (IHT paid on first transfer × (Value of net benefit received / Value of first transfer)). The 'net benefit' is the actual value received by B after any costs associated with receiving the gift (for example, legal costs or debts incurred specifically in receiving the property). Most commonly the net benefit equals the gross value transferred.

Example: A dies in January 2024 leaving her £800,000 estate to B. IHT on A's estate: (£800,000 − £325,000 nil-rate band) × 40% = £190,000. B inherits the net estate of £610,000 (£800,000 minus the £190,000 IHT). B then dies in September 2025 — 1 year 8 months after A — with B's estate (including the inherited assets) worth £750,000 in total. IHT on B's estate before QSR: (£750,000 − £325,000) × 40% = £170,000. QSR calculation: the time elapsed is between 1 and 2 years, so the percentage is 80%. Net benefit B received: £610,000. QSR = 80% × (£190,000 × (£610,000 / £800,000)) = 80% × £144,875 = £115,900. IHT payable on B's estate after QSR: £170,000 − £115,900 = £54,100. Without QSR, B's estate would have paid £170,000 in IHT. QSR reduces this by nearly £116,000.

Yes — QSR can apply to lifetime chargeable transfers, not only to transfers on death. If A made a chargeable lifetime transfer (CLT) — for example, settling property into a discretionary trust — that attracted IHT, and then A dies within 5 years, and the property transferred (or its proceeds) forms part of A's estate or is brought back into A's estate on death, QSR may reduce the IHT chargeable on A's death. The same sliding scale applies. QSR does not, however, apply to potentially exempt transfers (PETs) that become chargeable on the donor's death — HMRC's view is that the 'first transfer' for QSR purposes must have been a chargeable event attracting IHT, and a failed PET only becomes chargeable on the death that triggers it (so there is only one tax event, not two). Taper relief — a separate relief reducing the IHT on failed PETs where the donor survived 3 years — should not be confused with QSR.

QSR is calculated on the IHT actually paid on the first transfer. This means: if the first transfer attracted agricultural property relief (APR) or business property relief (BPR) and no IHT was paid (or reduced IHT was paid), QSR is correspondingly reduced or nil, because there is no IHT paid on the first transfer to relieve against. Where the first transfer was to a spouse and was exempt from IHT (the spouse exemption under s.18 IHTA 1984), no IHT was paid — so QSR is not available when that spouse later dies and the property passes on for a second time. QSR is most valuable where the first transfer was a fully chargeable estate (no significant reliefs or exemptions) and the second death follows quickly. Executors and tax advisers should always check whether QSR is available when administering an estate where the deceased had inherited property in the previous five years.

QSR is claimed by the personal representatives of the second estate when submitting the IHT400 to HMRC. It is entered at box 111 (IHT400) using the worksheet in Schedule IHT416 (quick succession relief). Executors need: (a) confirmation of when the first death occurred; (b) the amount of IHT paid on the first estate (from the grant of probate and IHT421 for the first estate, or correspondence with HMRC); (c) the value of the net benefit B received from the first estate; and (d) the value of the first estate. If the first estate was in a different jurisdiction, QSR may still apply but will be calculated on any UK IHT charged on overseas assets — double tax relief treaties also need to be considered. QSR is not time-barred in the same way as some repayment claims, but it must be claimed — it is not automatically applied by HMRC. Executors administering estates within 5 years of a prior death should always check for this relief before finalising the IHT return.