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Section 8F Residence nil-rate amount: no interest in home goes to descendants etcF1

United Kingdom

(1)

Subsections (2) and (3) apply if the person's estate immediately before the person's death—

(a)

does not include a qualifying residential interest, or

(b)

includes a qualifying residential interest but none of the interest is closely inherited.

(2)

The person's residence nil-rate amount is nil.

(3)

An amount—

(a)

equal to the person's default allowance, or

(b)

if E is greater than TT, equal to the person's adjusted allowance,

is available for carry-forward.

(4)

See also—

  • F2section 8FD (which applies instead of this section where there is entitlement to a downsizing addition),

  • section 8H (meaning of “qualifying residential interest” F3, “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).

Annotations

Textual amendments

F1

Ss. 8D-8M inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 9(4)

F2

Words in s. 8F(4) inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 4(a)

F3

Words in s. 8F(4) inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 4(b)

Notes on the whole Act

Textual amendments

F1

By Finance Act 1986 s. 100(1), on and after 25 July 1986 the Capital Transfer Tax Act 1984 may be cited as the Inheritance Tax Act 1984.