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HMRC internal manual

Inheritance Tax Manual

Calculating QSR: the appropriate percentage

The percentage you use depends on the period between the earlier transfer and the death

Period between transfer and death Appropriate percentage
One year or less 100%
More than one year but not more than two years 80%
More than two years but not more than three years 60%
More than three years but not more than four years 40%
More than four years but not more than five years 20%


If the deceased’s death is more than five years after the earlier transfer, there is no relief.

If the death is on the anniversary of the earlier transfer, give the taxpayer the benefit of the doubt and allow relief on the higher percentage.