Quick Succession Tax

[Hollypolly]

My partner died recently, we weren't married or in a Civil Partnership but we would have been if I had realised the implication of this in dealing with his estate. I have only just foud out about Quick Succession Tax. He was one of the beneficiaries in his late brother's estate but is yet to receive his inheritance. It's approximately £60,000 and the solicitor dealing with the estate said that he will pass these funds to me on production of the Death Certificate, Will (in which he left everything to me) and my bank details etc.

I am 80 years old and trying to navigate the minefield of Inheritance Tax. Including 2 properties one of which I am living in as tenant's in common (another thing I have since learned worked against me) and cash (including the inheritance due) is about £80,000 over the £325,000 allowance.

Would I be entitled to claim anything in lieu of the quick succession tax rules?

Thank you if you can help me x

[AGoodman]

Possibly.

You need to ask the solicitor in the brother's estate how much inheritance tax was paid on the brother's estate and its net value (before tax). If you work through from Q11 in IHT400(Calculation) [link below] you can work out the original tax that was paid on the sum your late partner received from his brother.

You can then deduct quick succession relief from the tax payable on your partner's estate depending on the time that passed between them dying. It's a percentage of the original tax paid:

100% if death was within one year
80% within two years
60% within three years
40% within four years
20% within five years

You need to tick box 48a on the form IHT400 for your late partner's estate and deduct it from the tax. It's covered by questions 11-18 of form IHT400(Calc).

IHT400: https://assets.publishing.service.gov.uk/media/670ceb76e84ae1fd8592f27a/IHT400_10_24.pdf
IHT400(Calc): https://assets.publishing.service.gov.uk/media/63ff14dde90e0740d4ce8077/IHT400Calc_0223.pdf