I4.267 Quick succession relief examples

IHT, trusts and estates

I4.267 Quick succession relief examples

I4.267 Quick succession relief examples

Example 1 — two deaths within five years

On 6 April 2017 A gave to B assets worth £11,000. A had already made chargeable transfers amounting to £350,000 in 20016/17 and he died in May 2018 having made no other transfers.

B died in May 2019, leaving an estate valued immediately before his death at £365,000, all of which he left by his Will to his son C. B had made no lifetime transfers.

The IHT payable by B on his gift from A was calculated as follows:

Gross gift to B£11,000
Deduct: Annual exemption for 2017/18(3,000)
Gross gift chargeable£8,000
IHT chargeable at 40%£3,200

The net gift received by B is £4,800.

The IHT payable on the death of B is calculated as follows:

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