Inheritance Tax Act 1984 section 8H

Meaning of "qualifying residential interest"

Section 8H defines what counts as a "qualifying residential interest" for the purposes of the residence nil-rate band, including the rules where a person owned more than one home or disposed of a home before death.

• A residential property interest is an interest in a dwelling-house that the person actually lived in as their residence while they owned an interest in it
• If the estate includes interests in only one qualifying home, that home is automatically the qualifying residential interest; if there are two or more, the personal representatives must nominate one
• Where a person disposed of a qualifying home on or after 8 July 2015 and before death, the disposed interest can be a "qualifying former residential interest" provided specific nomination and timing rules are met
• A dwelling-house includes its garden and grounds, and a home owned but not yet occupied may still qualify if the person is living in job-related accommodation and intends to move into it