Inheritance Tax Act 1984 section 8F

Residence nil-rate amount: no interest in home goes to descendants etc

Section 8F sets out the rules that apply when a deceased person's estate either does not include a qualifying home, or includes a qualifying home but none of it passes to direct descendants.

• Where the estate contains no qualifying residential interest, or none of it is closely inherited by direct descendants, the residence nil-rate amount is nil
• Even though the residence nil-rate band cannot be used, the unused allowance is preserved and made available for carry-forward to a surviving spouse or civil partner
• The amount available for carry-forward equals the person's default allowance, or their adjusted allowance if the estate value exceeds the taper threshold
• Separate downsizing provisions under section 8FD may apply instead where the deceased previously owned a qualifying home but no longer held one at death