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Will father’s property still qualify for residence nil rate band?
My father is considering letting his home to help fund his nursing home costs rather than selling it. If he does that will he still qualify for the residence nil rate band for inheritance tax (IHT) purposes? Is there a length of time that, if the home is let, would make it no longer qualify?  
 
Arthur Weller replies:  
If you look at the example in HMRC’s Inheritance Tax manual at IHTM46031 (www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm46031), you can see that since your father has established that this house is his home, it doesn't matter that afterwards he moves to a nursing home, for however long. See also page IHTM46050

This question was first printed in Tax Insider in September 2019.

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