3(1)Section 8E (residence nil-rate amount: interest in home goes to descendants etc) is amended as follows.
(2)In subsection (6), after “(7)” insert “and sections 8FC and 8M(2B) to (2E)”.
(3)In subsection (7), for paragraphs (a) and (b) substitute—
“(a)the person’s residence nil-rate amount is equal to VT,
(b)where E is less than or equal to TT, an amount, equal to the difference between VT and the person’s default allowance, is available for carry-forward, and
(c)where E is greater than TT, an amount, equal to the difference between VT and the person’s adjusted allowance, is available for carry-forward.”
(4)In subsection (8)—
(a)before the entry for section 8H insert—
“section 8FC (modifications of this section where there is entitlement to a downsizing addition),”, and
(b)in the entry for section 8H, after ““qualifying residential interest”” insert “, “qualifying former residential interest” and “residential property interest””.