Question 1

Section A: Objective Test

Beatrice died on 10 May 2023. She had inherited an estate from her brother, Charles, who died on 15 August 2020. Charles's estate paid IHT of £40,000 on the assets transferred to Beatrice. What percentage of Quick Succession Relief (QSR) will be applied to Beatrice's estate regarding this inheritance?

Accepted Answer

Calculate the time elapsed between the two deaths. Charles died 15 August 2020. Beatrice died 10 May 2023. The time elapsed is 2 years and 9 months. Apply the QSR percentage scale: 0-1 yr (100%), 1-2 yrs (80%), 2-3 yrs (60%), 3-4 yrs (40%), 4-5 yrs (20%).

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Miscounting the years or confusing the percentage bands.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 5

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