The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Quick succession relief (QSR) reduces the tax payable when the same property has been subject to more than one charge to IHT. It applies where there have been two chargeable transfers on which tax is payable within a period of five years.
Although commonly called QSR, it is described in the legislation as relief for ‘successive charges’.
Typically it arises in a deceased estate which includes inherited property. For example, if a person dies within five years of inheriting an interest in another estate, it is quite likely that inheritance tax will have been paid on the first death and will become payable again on the second death. The relief reduces the tax payable on the second death.
It may also arise in the following situations:
where the deceased received a lifetime gift from another person (a potentially exempt transfer) which becomes taxable because that other person has died within seven years of the gift. Note that the donor’s death could occur after the death of the recipient.
where the second transfer is a chargeable lifetime transfer arising on the termination of a qualifying interest in possession and the QIIP was acquired on an earlier chargeable transfer
These two unusual circumstances are described more fully below.
A potential claim for QSR should identify an earlier transfer and a later transfer of the same property within five years of each other, both of which would incur a liability to inheritance tax. There must be a link between the two in that the value transferred initially is followed through to the second transfer.
However, it is not necessary for the actual property received under the earlier transfer to be included in the second estate to claim QSR. For example, if the deceased had inherited money, he may have spent it. If he has disposed of it by way of gift, those transfers must be brought into the computation of the death estate in
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
Working rule agreements are used in the construction industry and similar areas. They are national agreements made between trade unions and employers across the country, setting out the terms and conditions that apply to particular categories of hourly paid manual workers. The workers concerned are
The majority of state benefits (also called social security benefits) are managed by the Department of Work and Pensions (DWP) via the Jobcentre Plus.Some benefits are dependent on a national insurance contribution record (and different classes of national insurance provide different benefit
This guidance note provides an overview of the basic principles of inheritance tax, when it is charged and how it is calculated. It contains links and references to other parts of the module where more details can be found.Transfers of valueInheritance tax is based on the concept of a transfer of