PART 2Other taxes
Inheritance tax
66Residence nil-rate band
1
IHTA 1984 is amended as follows.
2
In section 8FA(2)(b) and (5) (conditions for entitlement to downsizing addition), for “VT”, in each place it occurs, substitute “the value transferred by the transfer of value under section 4 on the person’s death”.
3
In section 8FE(9) (calculation of downsizing addition in section 8FA cases), in Step 2, for “VT” substitute “the value transferred by the transfer of value under section 4 on the person’s death”.
4
In section 8E(1) (which, in relation to the person mentioned in section 8D(1), refers to the transfer of value under section 4), after “section 4” insert “on the person’s death”.
5
In section 8J(6) (meaning of “inherited”: property disposed of before death by gift subject to a reservation), for the words after “by way of” substitute
gift—
a
subsections (2) to (5) do not apply, and
b
B inherits the property if the property originally comprised in the gift became comprised in B’s estate on the making of the disposal.
6
The amendments made by this section apply for the purpose of calculating the amount of the charge to inheritance tax under section 4 of IHTA 1984 on a person’s death if the person dies after 29 October 2018.