IHTM22052 | Calculating QSR: the appropriate percentage
From HM Revenue & Customs · Inheritance Tax Manual
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.