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HMRC internal manual

Inheritance Tax Manual

Calculating QSR: summary and formula

You allow quick succession relief (QSR) (IHTM22041) by reducing the tax charged on the whole of the death estate

  • by a percentage
  • of the tax charged on the earlier transfer
  • so far as that transfer increased the deceased’s estate.

If the tax charged on the earlier transfer was on settled property in which the deceased had an interest in possession (IHTM16061), very exceptionally you will have to restrict the QSR on the deceased’s death because part of the tax has been allowed against a lifetime transfer. QSR on settled property (IHTM22090) is discussed later in this section.

Subject to this qualification, the amount of the reduction depends on

  • the appropriate percentage, which is based on the length of time between the earlier transfer and the death
  • the amount of tax on the earlier chargeable transfer (IHTM04027)
  • and the extent to which the earlier chargeable transfer increased your deceased’s estate, which involves a comparison between the increase in your deceased’s estate because of the earlier chargeable transfer, and the value of the earlier chargeable transfer.

Expressed as a formula, the calculation is (A ÷ D) × B × C


Where A = Amount of increase of deceased’s estate (IHTM22054)
  B = Tax on earlier chargeable transfer (IHTM22053)
  C = Appropriate percentage (IHTM22052)
  D = Value of earlier chargeable transfer (IHTM22053)