Section A

David inherited £200,000 from his sister, Sarah, who died 3 years ago. Sarah's estate paid IHT at 40% on this legacy. David has now died. His estate is subject to IHT. What percentage of the IHT paid by Sarah's estate on the £200,000 can David's estate claim as Quick Succession Relief (QSR)?

Quick Succession Relief (QSR) reduces the IHT payable on an estate if the deceased inherited property within the last five years that was already subject to IHT. The relief percentage depends 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%). Since David died 3 years after Sarah, the applicable rate is 60%.