9 Increased nil-rate band where home inherited by descendants
Finance (No 2) Act 2015 (2015 c 33) | Legislation

Part 2 Inheritance Tax

Rate bands

9  Increased nil-rate band where home inherited by descendants

(1)     IHTA 1984 is amended as follows.

(2)     In section 7(1) (rates at which inheritance tax charged on the value transferred by a chargeable transfer) after “Subject to subsections (2), (4) and (5) below and to” insert “section 8D and”.

(3)     In section 8A(2) (test for whether person has unused nil-rate band on death), in the definition of M (maximum amount transferable at 0%), after “were sufficient but” insert “that the maximum amount chargeable at nil per cent. under section 8D(2) is equal to the person's residence nil-rate amount and”.

(4)     After section 8C insert—

“8D Extra nil-rate band on death if interest in home goes to descendants etc

(1)     Subsections (2) and (3) apply for the purpose of calculating the amount of the charge to tax under section 4 on a person's death if the person dies on or after 6 April 2017.

(2)     If the person's residence nil-rate amount is greater than nil, the portion of VT that does not exceed the person's residence nil-rate amount is charged at the rate of 0%.

(3)     References in section 7(1) to the value transferred

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