Press Releases

February 2011

Preventing double inheritance tax

South-West chartered accountants Milsted Langdon are advising that a little-known tax relief may be of help to people who fear they may have to pay Inheritance Tax (IHT) more than once on items that are passed between different members of the same family.

Simon Denton, from the firm, said: “For example, if the owner of an estate has no children and leaves it to his brother, he would pay IHT at 40 per cent on anything above the £325,000 threshold as usual. But if the brother then also dies, leaving the estate to his children, it may appear that a further 40 per cent of what was left of the estate over £325,000 would then be due.

“Fortunately, there is a provision known as Quick Succession Relief (QSR), designed to prevent HM Revenue and Customs effectively receiving IHT twice on the same estate.”

QSR is calculated by taking into account how much was inherited from the first estate, how much tax was paid on that and the amount of time elapsed. A maximum of five years must have elapsed between the deaths involved for QSR to become applicable.

For more information visit www.milsted-langdon.co.uk or call on 0117 945 2500.