Section A: Objective Test

Beatrice died on 10 May 2023. Her estate included an asset inherited from her brother, who died on 15 August 2021. Her brother's estate paid IHT of £40,000 on this specific asset.

What percentage of Quick Succession Relief (QSR) will be applied to reduce the IHT payable on Beatrice's estate regarding this asset?

Quick Succession Relief (QSR) is available when an asset in the deceased's estate was inherited within the last 5 years and IHT was paid on it. The relief is a percentage of the tax paid on the first death, based on the time between the deaths: 0-1 year: 100% 1-2 years: 80% 2-3 years: 60% 3-4 years: 40% 4-5 years: 20% Beatrice died 1 year and 9 months after her brother, so the 80% rate applies.