7. Percentage of residence passing to direct descendants
This is the share of the residence passing to direct descendants. For example, if a residence is included in the residue of the
estate and it is left to two children and a nephew the percentage to enter here is 66.6667% (two thirds) Use 4 decimal places.
8. Are there any exemptions or reliefs?
If any part of the residence passes to an exempt beneficiary, such as the deceased’s spouse or civil partner or to a charity, or if
a relief, such as agricultural relief, applies to any part of that property answer ‘Yes’. If the residence falls into the residue of the
estate and part of the residue passes to an exempt beneficiary, answer ‘Yes’ to this question.
9. Grossing up and Interaction
Grossing up will apply If inheritance tax is due, and:
• the will makes any gifts that are ‘free of tax’
• any part of the residue is exempt (because, for example it passes to charity or the deceased’s spouse or civil partner) - The
residue is what is left in the estate after you have paid all debts, legacies and taxes
Interaction’ will apply if business or agricultural relief is due, and:
• any part of the estate is exempt
• the will makes any gifts of specific assets
• the assets on which the relief is due are not specifically given away under the will
If either grossing up or interaction applies, the calculation of RNRB will be complicated and we will do it for you, but continue
to complete the rest of the form.
10. Chargeable value of the whole residence
This is the value for inheritance tax purposes for the whole of the deceased’s interest in the property.
11. Chargeable value of the part of the residence that passes to a direct descendant
This is the value for inheritance tax purposes of the part of the property that is inherited by a direct descendant. For example if
the property is worth £400,000 and half passes to the surviving spouse and half to a child, the figure to include here would be
£200,000 for the part passing to the child.
12. Transferable Residence Nil Rate Band (TRNRB) from more than one pre-deceased spouse or civil partner
If you are claiming TRNRB from more than one pre-deceased spouse or civil partner, you need to add up the figures from
box 15 or 21 from each IHT436, but the total is limited to the maximum available RNRB for the year of death.
13. Downsizing allowance
In order to claim downsizing allowance:
• the deceased must have disposed of a former residence and either downsized to a less valuable residence, or ceased to own a
residence, on or after 8 July 2015
• the former residence would have qualified for the RNRB if it had been kept until death
• at least some of the estate is inherited by the deceased’s direct descendants
The downsizing addition can’t exceed the maximum amount of RNRB that would have been available if the disposal or
downsizing hadn’t happened.