CGT exemptions for certain 'trusts'

carveone

This is a bit of a weird question:

Essentially, if one owns a share in a property (in this case the original family home) but cannot sell that property due to restrictions placed on the sale in a will, is there then CGT exemptions in place when that restriction is lifted?

A cousin of mine says there is and says the law was introduced in 2005 but I cannot find it on the revenue site. Which isn't really a surprise I suppose.

To be more concrete about it: The house was inherited by 6 siblings in 1995 with the proviso that one of the siblings be allowed live in it for the rest of his life - the house could not be sold as long as he lived. The value of the house then was, say, €65k. When he died in 2010 one would think that the situation was as follows, assuming sale of the house and equal dispersment to the remaining 5 siblings

(say house is worth 250k at time of sale and death to make it simple)

250 - 65 / 5 = 37k each as capital gain with
37k/5 = 7.4k each as inheritance from sibling (his 1/6th share).

BUT. Apparantly there is some law that says that in this case capital accrual did not occur until such time as the house was available to be sold. In which case CGT is 0 and the situation is:

250 / 5 = 50k each as an inheritance from the original will.

I have no idea what the actual rules are here? Anyone know?

Mr. Incognito

Read the charter.

Thread closed.

And if you are trying to research this yourself it is CAT not CGT that applies.