{
  "url": "https://openlegislation.uk/inheritance-tax-act-1984/section-8E",
  "json_url": "https://openlegislation.uk/inheritance-tax-act-1984/section-8E.json",
  "legislation": "ukpga/1984/51",
  "legislation_title": "Inheritance Tax Act 1984",
  "legislation_url": "https://openlegislation.uk/inheritance-tax-act-1984",
  "path": "section/8E",
  "kind": "section",
  "number": "8E",
  "heading": "Residence nil-rate amount: interest in home goes to descendants etc",
  "text": "(1) Subsections (2) to (7) apply if—\n(a) the person's estate immediately before the person's death includes a qualifying residential interest, and\n(b) N% of the interest is closely inherited, where N is a number—\n(i) greater than 0, and\n(ii) less than or equal to 100,\nand 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.\n(2) Where—\n(a) E is less than or equal to TT, and\n(b) NV/100 is less than the person's default allowance,\nthe 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.\n(3) Where—\n(a) E is less than or equal to TT, and\n(b) NV/100 is greater than or equal to the person's default allowance,\nthe person's residence nil-rate amount is equal to the person's default allowance (and no amount is available for carry-forward).\n(4) Where—\n(a) E is greater than TT, and\n(b) NV/100 is less than the person's adjusted allowance,\nthe 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.\n(5) Where—\n(a) E is greater than TT, and\n(b) NV/100 is greater than or equal to the person's adjusted allowance,\nthe person's residence nil-rate amount is equal to the person's adjusted allowance (and no amount is available for carry-forward).\n(6) Subsections (2) to (5) have effect subject to subsection (7) and sections 8FC and 8M(2B) to (2E).\n(7) Where the person's residence nil-rate amount as calculated under subsections (2) to (5) without applying this subsection is greater than VT—\n(a) the person's residence nil-rate amount is equal to VT,\n(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, and\n(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.\n(8) See also—\nsection 8FC (modifications of this section where there is entitlement to a downsizing addition),\nsection 8H (meaning of “qualifying residential interest” , “qualifying former residential interest” and “residential property interest”),\nsection 8J (meaning of “inherit”),\nsection 8K (meaning of “closely inherited”), and\nsection 8M (cases involving conditional exemption).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Ss. 8D-8M inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 9(4)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 8E(1) inserted (with application in accordance with s. 66(6) of the amending Act) by Finance Act 2019 (c. 1), s. 66(4)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 8E(6) inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 3(2)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "S. 8E(7)(a)-(c) substituted for s. 8E(7)(a)(b) (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 3(3)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 8E(8) inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 3(4)(a)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 8E(8) inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 3(4)(b)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1984/51/section/8E",
    "retrieved_at": "2026-10-29T10:01:12.914001+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}