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Legislation
Inheritance Tax Act 1984

Crossheading Rates

  • Section 7 Rates.
  • Section 8 Indexation of rate bands.
  • Section 8A Transfer of unused nil-rate band between spouses and civil partners
  • Section 8B Claims under section 8A
  • Section 8C Section 8A and subsequent charges
  • Section 8D Extra nil-rate band on death if interest in home goes to descendants etc
  • Section 8E Residence nil-rate amount: interest in home goes to descendants etc
  • Section 8F Residence nil-rate amount: no interest in home goes to descendants etc
  • Section 8FA Downsizing addition: entitlement: low-value death interest in home
  • Section 8FB Downsizing addition: entitlement: no residential interest at death
  • Section 8FC Downsizing addition: effect: section 8E case
  • Section 8FD Downsizing addition: effect: section 8F case
  • Section 8FE Calculation of lost relievable amount
  • Section 8G Meaning of “brought-forward allowance”
  • Section 8H Meaning of “qualifying residential interest” , “qualifying former residential interest” and “residential property interest”
  • Section 8HA Qualifying former residential interest”: interests in possession
  • Section 8J Meaning of “inherited”
  • Section 8K Meaning of “closely inherited”
  • Section 8L Claims for brought-forward allowance and downsizing addition
  • Section 8M Residence nil-rate amount: cases involving conditional exemption
  • Section 9 Transitional provisions on reduction of tax.
  1. Rates
  2. Downsizing addition: entitlement: no residential interest at death

Section 8FB | Downsizing addition: entitlement: no residential interest at death F1

From legislation.gov.uk

(1)There is also entitlement to a downsizing addition in calculating the person's residence nil-rate amount if each of conditions G to K is met (see subsection (7) for the amount of the addition).F1

(2)Condition G is that the person's estate immediately before the person's death (“the estate”) does not include a residential property interest.F1

(3)Condition H is that VT is greater than nil.F1

(4)Condition I is that there is a qualifying former residential interest in relation to the person (see sections 8H(4A) to (4F) and 8HA).F1

(5)Condition J is that at least some of the estate is closely inherited.F1

(6)Condition K is that a claim is made for the addition in accordance with section 8L(1) to (3).F1

(7)Where there is entitlement as a result of this section, the addition—F1

(a)is equal to the lost relievable amount (see section 8FE) if that amount is less than so much of VT as is attributable to so much of the estate as is closely inherited, andF1

(b)otherwise is equal to so much of VT as is attributable to so much of the estate as is closely inherited.F1

(8)Subsection (7) has effect subject to section 8M(2G) (reduction of downsizing addition in certain cases involving conditional exemption).F1

(9)See also—F1

section 8FD (effect of an addition: section 8F case),

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).

Notes

  1. F1

    Ss. 8FA-8FE inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 5

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