There is entitlement to a downsizing addition in calculating the person's residence nil-rate amount if each of conditions A to F is met (see subsection (8) for the amount of the addition).
Condition B is that not all of VT is attributable to the person's qualifying residential interest.
Condition C is that there is a qualifying former residential interest in relation to the person (see sections 8H(4A) to (4F) and 8HA).
Condition E is that at least some of the remainder is closely inherited, where "the remainder" means everything included in the person's estate immediately before the person's death other than the person's qualifying residential interest.
Condition F is that a claim is made for the addition in accordance with section 8L(1) to (3).
Where there is entitlement as a result of this section, the addition—
Subsection (8) has effect subject to section 8M(2G) (reduction of downsizing addition in certain cases involving conditional exemption).
See also—
section 8FC (effect of an addition: section 8E case),
section 8FD (effect of an addition: section 8F case),
section 8H (meaning of "qualifying residential interest", "qualifying former residential interest" and "residential property interest"),
section 8J (meaning of "inherit"),
section 8K (meaning of "closely inherited"), and
section 8M (cases involving conditional exemption).