ExpertEasy2 marksMultiple Choice
ACCA · Question 07 · Inheritance tax
Section A: Objective Test
Beatrice died on 10 May 2023. She had inherited an estate from her brother, Charles, who died on 15 August 2020. Charles's estate paid IHT of £40,000 on the assets transferred to Beatrice. What percentage of Quick Succession Relief (QSR) will be applied to Beatrice's estate regarding this inheritance?
Section A: Objective Test
Beatrice died on 10 May 2023. She had inherited an estate from her brother, Charles, who died on 15 August 2020. Charles's estate paid IHT of £40,000 on the assets transferred to Beatrice. What percentage of Quick Succession Relief (QSR) will be applied to Beatrice's estate regarding this inheritance?
Answer options:
A.
100%
B.
80%
C.
60%
D.
40%
How to approach this question
Calculate the time elapsed between the two deaths. Charles died 15 August 2020. Beatrice died 10 May 2023. The time elapsed is 2 years and 9 months. Apply the QSR percentage scale: 0-1 yr (100%), 1-2 yrs (80%), 2-3 yrs (60%), 3-4 yrs (40%), 4-5 yrs (20%).
Full Answer
C.60%✓ Correct
The time between Charles's death (15 August 2020) and Beatrice's death (10 May 2023) is 2 years and almost 9 months. Because the deaths occurred between 2 and 3 years apart, the Quick Succession Relief (QSR) percentage is 60%.
Common mistakes
Miscounting the years or confusing the percentage bands.
Practice the full ACCA TX — Taxation Practice Exam 5
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