Section 8FD Downsizing addition: effect: section 8F caseF1

(1)

This section applies if—

(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, and

(b)

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

(2)

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

(3)

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

(4)

Where—

(a)

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

(b)

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

no amount is available for carry-forward.

(5)

Where—

(a)

E is less than or equal to TT, and

(b)

the downsizing addition is less than the person's default allowance,

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

(6)

Where—

(a)

E is greater than TT, and

(b)

the downsizing addition is less than the person's adjusted allowance,

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

Annotations

F1: Ss. 8FA-8FE inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 5

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.