Inheritance Tax Act 1984 section 141

Two or more transfers within five years

Section 141 provides for quick succession relief (QSR), which reduces the inheritance tax payable when a person's estate has been increased by a chargeable transfer made within five years before their death or certain lifetime transfers of settled property.

• QSR applies where a person's estate was increased by a chargeable transfer made within five years before their death, reducing the tax on the later transfer by a sliding percentage (100% within one year, down to 20% between four and five years)
• For lifetime transfers to qualify, both the first and later transfers must relate to the same settled property in which the transferor had an interest in possession, and the first transfer must have been the creation of (or made after) the settlement
• Where multiple later transfers follow a single first transfer, the relief applies to the earliest later transfer first, with any unused relief carried forward to subsequent transfers in chronological order
• The relief also applies where a person's estate was increased by a pre-1986 gift inter vivos or termination of a beneficial interest in possession, where tax became payable on a subsequent death