Provisions were introduced to prescribe the circumstances in which an increased residence nil rate band (RNRB) will continue to be available where a person has disposed of a residence in which they lived at some stage1.
For information on the RNRB generally see I4.162 and I4.163.
The legislation operates through a series of equations and it is regrettable that something of such public interest has become an algebraic exercise far beyond the understanding of many people. It applies for deaths on or after 6 April 2017 where the home was disposed of after 7 July 2015.
The legislation envisages two different circumstances where a downsizing addition will be available:
Firstly where the deceased downsized from a more valuable residence to a less valuable residence, and secondly where a residence was sold and no other residence was purchased. Where an interest in more than one former residence has been disposed of after 7 July 2015, the personal representatives (PRs) can nominate which residence is to be used for this relief2.
If
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 16:39