Quick succession relief reduces the inheritance tax on a person’s death where, in the five years before, their estate was increased by a transfer on which inheritance tax was paid. The relief is a percentage of the tax paid on the earlier transfer, scaled down from 100% within one year to 20% in the fifth year, and it is deducted from the tax on the later death.

What problem does quick succession relief solve?

If a parent dies and leaves a taxable estate to a child, and the child then dies soon after, the same wealth can be taxed twice within a short period. Section 141 of the Inheritance Tax Act 1984 (IHTA 1984) gives relief for this. HMRC’s Inheritance Tax Manual at IHTM22041 describes it as designed to reduce the burden where an estate taxable on death includes assets received in the previous five years under an earlier transfer on which tax was, or becomes, payable.

The relief does not exempt the inherited assets. It reduces the tax bill on the later death by reference to the tax already paid.

When does the relief apply?

Under section 141(1) and IHTM22042, all of these must be true:

  • There was an earlier chargeable transfer that increased the deceased’s estate. It can be a death estate, a lifetime transfer chargeable when made, a failed potentially exempt transfer, or a transfer of settled property.
  • Tax was actually payable on that earlier transfer.
  • The earlier transfer was not more than five years before the death.
  • Tax is payable on the later death estate.

IHTM22042 adds that the assets received do not need to still be in the estate. If the person inherited shares and sold or gave them away, the relief is still available, although HMRC may ask where the money went if lifetime gifts look likely.

When is there no relief?

IHTM22043 lists the cases where relief is denied:

  • The earlier transfer was exempt, for example to a spouse or civil partner.
  • The earlier transfer was chargeable but no tax was paid because it fell within the nil rate band.
  • The earlier transfer was more than five years before the death.
  • No tax is payable on the later estate, because it is wholly exempt or within the threshold.

An exempt transfer in the middle breaks the chain. HMRC’s example is a brother who inherits a taxable estate and then dies leaving everything to his wife. There is no relief on his death because his estate is spouse exempt, and none on the wife’s later death because her estate was increased by an exempt transfer, not by the original chargeable one.

How is the relief calculated?

IHTM22051 gives the formula:

Relief = (A ÷ D) × B × C

A
The amount by which the earlier transfer increased the deceased’s estate, net of the tax borne on it.
B
The tax charged on the whole of the earlier transfer.
C
The appropriate percentage for the time between the two events.
D
The value of the earlier chargeable transfer.

Section 141(3) and IHTM22052 set the percentages:

Time between earlier transfer and death Percentage
One year or less 100%
More than one year, not more than two 80%
More than two years, not more than three 60%
More than three years, not more than four 40%
More than four years, not more than five 20%

HMRC says that if the death falls on an anniversary of the earlier transfer, it gives the benefit of the doubt and uses the higher percentage.

How is the increase in the estate measured?

This is where most errors happen. IHTM22071 explains the tax paid on the earlier transfer cannot have increased the deceased’s estate, so A is the net value after tax. Who bore the tax depends on the will. IHTM22071 notes that pecuniary legacies and specific gifts are normally free of tax unless the will says otherwise, while residue, foreign property, settled property and joint property bear their own tax. A residuary beneficiary therefore usually bears the tax for the whole estate.

IHTM22074 gives an example: an estate of £550,000 pays tax of £90,000, with £200,000 of tax free legacies and the residue to Marcos. Marcos receives £260,000 net and dies in the second year, so the relief is (£260,000 ÷ £550,000) × £90,000 × 80% = £34,036.

IHTM22061 adds that A uses the values agreed for the earlier transfer, after any business relief or agricultural relief, and ignores administration costs of the earlier estate. IHTM22054 tells officers to check for any deed of variation on the earlier estate that changed what the deceased was entitled to.

How does the calculation work on two family deaths?

Illustration only. Ignore the residence nil rate band and assume no lifetime gifts. Ann dies leaving her whole estate of £625,000 to her daughter Beth. Tax on Ann’s death is 40% of £300,000, which is £120,000, paid from the estate, so Beth receives £505,000.

Beth dies two years and six months later, leaving an estate of £900,000 to her children. Tax before relief is 40% of £575,000, which is £230,000.

  • A = £505,000, D = £625,000, B = £120,000, C = 60%.
  • Relief = (£505,000 ÷ £625,000) × £120,000 × 60% = £58,176.
  • Tax payable on Beth’s estate = £230,000 less £58,176 = £171,824.

Had Beth died within a year of Ann, C would be 100% and the relief £96,960.

What does the relief reduce, and are there limits?

IHTM22045 explains the relief comes off the tax on the whole death estate, including settled property and gifts with reservation, not only the free estate. It applies even if the inherited assets are themselves exempt on the later death, provided some tax is payable. Where tax falls on more than one part of the estate, the net tax is apportioned between them.

The relief cannot exceed the tax payable. IHTM22045 confirms any excess is lost and is not repaid. Section 141(4) adds that where one earlier transfer could support relief on several later transfers, relief is given against the earliest first, and later ones only use any part of the earlier tax not yet relieved.

Where the later estate also qualifies for the 36% charity rate on some components but not others, section 141A apportions the relief by reference to the tax on each component (IHTM45050).

Does it apply to lifetime events?

Only for settled property. Section 141(1)(b) and (2) allow relief where a person with an interest in possession has a lifetime chargeable transfer of the trust property, and the earlier transfer was of the same settled property. IHTM22041 confirms there is no comparable relief on lifetime transfers of unsettled property.

How is the relief claimed?

On the IHT400 calculation. IHTM22041 says the executors should give the earlier deceased’s name, date of death and IHT reference, using schedule IHT415 where the earlier estate is still being administered, and that HMRC will allow the relief if the file shows it is clearly due even if not claimed. Executors should still claim it rather than rely on that.

What mistakes are common?

  • Using the gross inheritance as A instead of the net amount after the tax it bore.
  • Claiming where the earlier estate paid no tax.
  • Missing the relief because the inherited assets were spent or given away.
  • Getting the period wrong; it runs from the earlier transfer to the later death, not from probate or distribution.

Executors handling successive estates should also read our page on acting as executor.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.