Section 8G | Meaning of “brought-forward allowance” ^F1

(1)This section is about the amount of the brought-forward allowance (see section 8D(5)(f)) for a person (“P”) who dies on or after 6 April 2017.^F1

(2)In this section “related person” means a person other than P where—^F1

(a)the other person dies before P, and^F1

(b)immediately before the other person dies, P is the other person's spouse or civil partner.^F1

(3)P's brought-forward allowance is calculated as follows—^F1

(a)identify each amount available for carry-forward from the death of a related person (see sections 8E , 8F and 8FD, and subsections (4) and (5)),^F1F2

(b)express each such amount as a percentage of the residential enhancement at the death of the related person concerned,^F1

(c)calculate the percentage that is the total of those percentages, and^F1

(d)the amount that is that total percentage of the residential enhancement at P's death is P's brought-forward allowance or, if that total percentage is greater than 100%, P's brought-forward allowance is the amount of the residential enhancement at P's death,^F1

but P's brought-forward allowance is nil if no claim for it is made under section 8L.

(4)Where the death of a related person occurs before 6 April 2017—^F1

(a)an amount equal to £100,000 is treated for the purposes of subsection (3) as being the amount available for carry-forward from the related person's death, but this is subject to subsection (5), and^F1

(b)the residential enhancement at the related person's death is treated for those purposes as being £100,000.^F1

(5)If the value (“RPE”) of the related person's estate immediately before the related person's death is greater than £2,000,000, the amount treated under subsection (4)(a) as available for carry-forward is reduced (but not below nil) by—^F1