IHT – the additional residence nil-rate band and trustees

The additional residence nil-rate band will start becoming available from April 2017. The pre-requisites are that a deceased should have owned an interest in a house or other dwelling, in which he lived, and that it should pass to his direct descendants on his death. Of course, it is not unusual for the beneficiary of a trust to live in a house which is part of the trust fund, and this is something which is catered for by the legislation, which is to be found in two places. The greater part is contained in new ss8D to 8L inserted into Inheritance Tax (IHT) Act 1984 by s9 Finance (No2) Act 2015.