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Contents

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: effect: section 8F case

Section 8FD | Downsizing addition: effect: section 8F case F1

From legislation.gov.uk

(1)This section applies if—F1

(a)as a result of section 8FA or 8FB, there is entitlement to a downsizing addition in calculating the person's residence nil-rate amount, andF1

(b)apart from this section, the person's residence nil-rate amount is given by section 8F.F1

(2)Subsections (3) to (6) apply instead of section 8F.F1

(3)The person's residence nil-rate amount is equal to the downsizing addition.F1

(4)Where—F1

(a)E is less than or equal to TT, and the downsizing addition is equal to the person's default allowance, orF1

(b)E is greater than TT, and the downsizing addition is equal to the person's adjusted allowance,F1

no amount is available for carry-forward.

(5)Where—F1

(a)E is less than or equal to TT, andF1

(b)the downsizing addition is less than the person's default allowance,F1

an amount, equal to the difference between the downsizing addition and the person's default allowance, is available for carry-forward.

(6)Where—F1

(a)E is greater than TT, andF1

(b)the downsizing addition is less than the person's adjusted allowance,F1

an amount, equal to the difference between the downsizing addition and the person's adjusted allowance, is available for carry-forward.

Notes

  1. F1

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

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