Q. My father inherited a large sum of money a few years before his own death. This money had already been subject to Inheritance Tax, how can I avoid paying full Inheritance Tax on the same money again?
A. Quick Succession Relief.
Quick Succession Relief can reduce Inheritance Tax payable if the two deaths occurred within 5 years of each other.
The reduction depends on the years between transfer and death:
- 100% – up to one year
- 80% – between 1 and 2 years
- 60% – between 2 and 3 years
- 40% – between 3 and 4 years
- 20% – between 4 and 5 years
The Inheritance Tax threshold is £325,000.