IHTM22052 - Calculating QSR: the appropriate percentage

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

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