Section B - Case 3 (Oakfield Farms)

Arthur's estate on death was valued at £1.8 million. He left his entire estate to his children. He had downsized from a large family home to a smaller cottage two years before his death, freeing up cash.

Can Arthur's estate claim the Residence Nil Rate Band (RNRB) downsizing addition?

The Residence Nil Rate Band (RNRB) includes a 'downsizing addition'. This allows an estate to still benefit from the full RNRB if the deceased downsized to a less valuable home (or sold their home) on or after 8 July 2015, provided that other assets of an equivalent value are left to direct descendants (children/grandchildren). Since Arthur's estate is £1.8m, it is below the £2m taper threshold, so the full RNRB (including downsizing addition) is available.