This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

# Assessing: examples of calculations: calculation where there is quick succession relief (QSR)

## The facts

Roger died in November 2012 with free estate (Entry A) of £200,000, all personal assets.

Roger also had a life interest in a Will Trust (Entry B), which passes on his death. The trust is valued at £300,000 at the date of Rogers’s death.

There is no unused nil-rate band from the previous death of a spouse or civil partner to carry over to Roger’s estate.

QSR of £10,000 is due against the tax payable on Roger’s estate.

## Calculate the available nil-rate band

The Inheritance Tax nil-rate band at the date Roger died is £325,000. There is no unused nil-rate band to add to this so the available nil-rate band is £325,000

## Apply the available nil-rate band to any lifetime transfers first

The available nil rate band of £325,000 is used against the lifetime transfers of £25,000 first. This leaves £300,000 to be used against the death estate.

## Find the chargeable value of the estate at the date of death

The chargeable value of the death estate, after deducting liabilities, exemptions and reliefs is £200,000 free estate plus £300,000 Will trust = £500,000.

## Apportion the available nil-rate band

Because there is more than one entry (IHTM31011) we must apportion the available nil rate band of £300,000 between them, before we can work out the tax.

### Entry A

£300,000 × £200,000 ÷ £500,000 = £120,000

### Entry B

£300,000 × £300,000 ÷ £500,000 = £180,000

Top of page

## Calculate the tax on Entries A and B:

### Entry A

£200,000 - £120,000 × 40% = £32,000

### Entry B

£300,000 - £180,000 × 40% = £48,000.

Top of page

## Apportion the QSR between the entries

### Entry A

£10,000 × £32,000 ÷ £80,000 = £4,000

### Entry B

£10,000 × £48,000 ÷ £80,000 = £6,000

Top of page

## Calculations

Here we will raise death estate calculations for:

• £28,000 (£32,000 - £4,000 QSR) at Entry A
• £42,000 (£48,000 - £6,000 QSR) at Entry B