Part 2: Inheritance Tax Section 9: Increased nil-rate band on death where home inherited by descendants etc. Details of the section Section 8D: Extra nil-rate band on death if interest in home goes to descendants etc.
New section 8D sets out the basic provisions for an additional residence nil-rate band that only applies when someone dies and how the additional amount on which tax will not be payable is calculated.
	Subsection (1) provides that subsections (2) and (3) apply calculating the amount of the charge to tax under section 4 on a person's death on or after 6 April 2017.
	Subsection (2) provides that tax is not payable on an amount of the person's estate up to the value of the residence nil-rate band.
	Subsection (3) ensures that the amount of the person's estate over and above any residence nil-rate band to which they may be entitled is charged to tax at the normal rates that apply for IHT.
	Subsection (5) sets out the main parameters to be used in calculating the new residence nil-rate band. It:
	states the maximum amounts of the residence nil-rate band (the "residential enhancement") for the years up to 2020-21 and subsequent years;
	gives the value of the "taper threshold" above which the residence nil-rate band is to be withdrawn;
	ensures that the taper threshold ("TT") on death is taken into account in the calculations;
	sets E as the value of a person's estate immediately before the death (which takes its normal meaning as the value of the assets less liabilities but before any reliefs and exemptions);
	defines VT as the chargeable value transferred on death (which is the value of the estate less liabilities and after any reliefs and exemptions);
	provides for the residential enhancement to be combined with the unused residence nil-rate band transferred from a spouse or civil partner (the "brought forward allowance") to give a total available residence nil-rate band or "default allowance"; and
	sets out the formula for calculating the total available residence nil-rate band (or "adjusted allowance") when the net value of an estate is more than the taper threshold. The default allowance is withdrawn by £1 for every £2 that the value of the estate exceeds the taper threshold.
	Subsections (6), (7) and (8) provide for the maximum amount of the residence nil-rate band and the taper threshold to be increased by the consumer prices index from 2021-22 onwards. The amounts for each tax year are to be specified by Treasury order.
	Subsection (9) defines what a tax year means in this section.