Part 2: Inheritance Tax Section 9: Increased nil-rate band on death where home inherited by descendants etc. Details of the section Section 8J: Meaning of "inherited"
New section 8J explains when property in a deceased person's ("D") estate is inherited by another person ("B") for the purposes of the residence nil-rate band.
	Subsection (1) explains the purpose of this section.
	Subsection (2) provides that B inherits property if it is transferred to B as a result of D's will, the rules of intestacy or some other means applying as a result of D's death.
	Subsection (3) explains that subsection (2) will not apply, and hence B does not inherit the property, if the property becomes settled in a trust on D's death or if it was settled in a certain type of trust before D died so that D was treated for IHT purposes as if they owned the property (although see subsections (4) and (5)).
	Subsection (4) gives the circumstances in which B inherits property that becomes settled in a trust on D's death. B will be treated for IHT purposes as inheriting property if it is settled in certain types of trusts where the settled assets are held or applied for the benefit of B. These include trusts where the beneficiary is treated for IHT purposes as if they own the property themselves, and trusts for bereaved minors and other persons under the age of 25.
	Subsection (5) applies where the property was already settled in a trust at D's death and D was treated as if they owned the property themselves. B inherits the property if B owns the property following D's death, or if B becomes entitled to benefit from the property and is treated for IHT purposes as if they own the property.
	Subsection (6) provides that where property has been given to B but is treated as forming part of the deceased's estate under the gift with reservation rules, B is the person who is treated as inheriting the property.