Section 8E | Residence nil-rate amount: interest in home goes to descendants etc F1
From legislation.gov.uk
(1)Subsections (2) to (7) apply if—F1F2
(a)the person's estate immediately before the person's death includes a qualifying residential interest, andF1
(b)N% of the interest is closely inherited, where N is a number—F1
(i)greater than 0, andF1
(ii)less than or equal to 100,F1
and in those subsections “NV/100” means N% of so much (if any) of the value transferred by the transfer of value under section 4 on the person’s death as is attributable to the interest.
(2)Where—F1
(a)E is less than or equal to TT, andF1
(b)NV/100 is less than the person's default allowance,F1
the person's residence nil-rate amount is equal to NV/100 and an amount, equal to the difference between NV/100 and the person's default allowance, is available for carry-forward.
(3)Where—F1
(a)E is less than or equal to TT, andF1
(b)NV/100 is greater than or equal to the person's default allowance,F1
the person's residence nil-rate amount is equal to the person's default allowance (and no amount is available for carry-forward).
(4)Where—F1
(a)E is greater than TT, andF1
(b)NV/100 is less than the person's adjusted allowance,F1
the person's residence nil-rate amount is equal to NV/100 and an amount, equal to the difference between NV/100 and the person's adjusted allowance, is available for carry-forward.
(5)Where—F1
(a)E is greater than TT, andF1
(b)NV/100 is greater than or equal to the person's adjusted allowance,F1
the person's residence nil-rate amount is equal to the person's adjusted allowance (and no amount is available for carry-forward).
(6)Subsections (2) to (5) have effect subject to subsection (7) and sections 8FC and 8M(2B) to (2E).F1F3
(7)Where the person's residence nil-rate amount as calculated under subsections (2) to (5) without applying this subsection is greater than VT—F1
(a)the person's residence nil-rate amount is equal to VT,F1F4
(b)where E is less than or equal to TT, an amount, equal to the difference between VT and the person's default allowance, is available for carry-forward, andF1F4
(c)where E is greater than TT, an amount, equal to the difference between VT and the person's adjusted allowance, is available for carry-forward.F1F4
section 8FC (modifications of this section where there is entitlement to a downsizing addition),
section 8H (meaning of “qualifying residential interest” , “qualifying former residential interest” and “residential property interest”),
section 8J (meaning of “inherit”),
section 8K (meaning of “closely inherited”), and
section 8M (cases involving conditional exemption).