Section 8FD — Inheritance Tax Act 1984: Downsizing addition: effect: section 8F case

Downsizing addition: effect: section 8F case 8FD 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.