Downsizing Calculations: General
For the downsizing provisions to be in point, there must have been a ‘residential property interest’ (IHTM46011) in a person’s estate on or after 8 July 2015 which has either been disposed of, or downsized from, before the date of death.
The downsizing rules are designed to replace RNRB that has been lost due to the downsizing or disposal. They are not designed to replace RNRB that has been lost because a residential property interest in the estate on death is not closely inherited.
There are therefore slightly different rules and slightly different calculations depending on whether: