- Latest available (Revised)
- Original (As enacted)
There are currently no known outstanding effects for the Inheritance Tax Act 1984, Section 8D.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
(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 by the chargeable transfer under section 4 on the person's death are to be read as references to the remainder (if any) of VT.
(4)The person's residence nil-rate amount is calculated in accordance with sections 8E to 8G [F2(and see also section 8M)].
(5)For the purposes of those sections and this section—
(a)the “residential enhancement” is—
(i)£100,000 for the tax year 2017-18,
(ii)£125,000 for the tax year 2018-19,
(iii)£150,000 for the tax year 2019-20, and
(iv)£175,000 for the tax year 2020-21 and subsequent tax years,
but this is subject to subsections (6) and (7),
(b)the “taper threshold” is £2,000,000 for the tax year 2017-18 and subsequent tax years, but this is subject to subsections (6) and (7),
(c)TT is the taper threshold at the person's death,
(d)E is the value of the person's estate immediately before the person's death,
(e)VT is the value transferred by the chargeable transfer under section 4 on the person's death,
(f)the person's “default allowance” is the total of—
(i)the residential enhancement at the person's death, and
(ii)the person's brought-forward allowance (see section 8G), and
(g)the person's “adjusted allowance” is—
(i)the person's default allowance, less
(ii)the amount given by—
but is nil if that amount is greater than the person's default allowance.
(6)Subsection (7) applies if—
(a)the consumer prices index for the month of September in any tax year (“the prior tax year”) is higher than it was for the previous September, and
(b)the prior tax year is the tax year 2020-21 or a later tax year.
(7)Unless Parliament otherwise determines, the amount of each of—
(a)the residential enhancement for the tax year following the prior tax year, and
(b)the taper threshold for that following tax year,
is its amount for the prior tax year increased by the same percentage as the percentage increase in the index and, if the result is not a multiple of £1,000, rounded up to the nearest amount which is such a multiple.
(8)The Treasury must before 6 April 2021 and each subsequent 6 April make an order specifying the amounts that in accordance with subsections (6) and (7) are the residential enhancement and taper threshold for the tax year beginning on that date; and any such order is to be made by statutory instrument.
(9)In this section—
[F3“consumer prices index” means the all items consumer prices index published by the Statistics Board,]
“tax year” means a year beginning on 6 April and ending on the following 5 April, and
“the tax year 2017-18” means the tax year beginning on 6 April 2017 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way).]
Textual Amendments
F1Ss. 8D-8M inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 9(4)
F2Words in s. 8D(4) inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 2(2)
F3Words in s. 8D(9) inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 15 para. 2(3)
Modifications etc. (not altering text)
C1S. 8D(7) restricted (10.6.2021) by Finance Act 2021 (c. 26), s. 86
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: