My brother is in a care home, and he wishes to use the funds from the sale of his large home to purchase a house to rent out. Would this property be classed as his one residence for inheritance tax purposes and am I right in thinking the allowance will go up on 1 April 2017 by £100,000 if you have only one residence?

Arthur Weller replies:
See www.gov.uk/government/case-studies/inheritancetax-residence-nil-rate-band-case-studies at case study 16. Depending on the figures involved it could be that your brother will be eligible for the new downsizing rules and benefit from the new residence nil rate band.