Inheritance Tax Act 1984 section 8L

Claims for brought-forward allowance and downsizing addition

Section 8L sets out who may claim the transferred (brought-forward) residence nil-rate band or downsizing addition on a person's death, the time limits for making such claims, and special rules where a chain of deaths means a claim on an earlier estate can be made by the personal representatives of a later deceased.

• A claim may be made by the deceased's personal representatives within two years of the end of the month of death (or three months from first acting, if later), or within a longer period agreed by HMRC; alternatively, any other person liable for the inheritance tax on that death may claim within a period allowed by HMRC.
• A claim made within the standard time limits may be withdrawn up to one month after the end of the relevant period.
• Where no claim was made on an earlier death (person P) and making one would only affect the tax on a later death (person A) — with no impact on any other estate — then A's personal representatives or other persons liable for tax on A's death may make the claim for P's unused allowance.
• The time limit for this secondary claim mirrors the main rule: two years from the end of the month in which A dies (or three months from the date A's personal representatives first act, if later), extendable by HMRC, and again withdrawable within one month of the relevant deadline.