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CAT - Dwelling House Exemption & Living Rent Free

  • 08-02-2018 6:14pm
    #1
    Thesomersarms
    Registered Users, Registered Users 2 Posts: 141 ✭✭


    Hi Folks,

    Take this scenario, uncle in hospital, will be unable to return to his only home and will be going into full time care, uncle has no children but has nephews, nephew one had been staying with uncle on occasion and helping with affairs as he was getting on, uncle wants this nephew to take care of the home and eventually move in, uncle does not wish to sell. Uncle was advised of dwelling house exemption if timelines work out as three years of nephew residing and 6 years after passing of uncle. Basically nephew residing for rest of life and that uncle is considered as residing at same time in the home if he was unable to due to being in a nursing home.

    However, nephew reluctant to move in as will have to invest lot of his own money to make the house properly habitable as it had fallen into disrepair and the other Big Reason is that will the nephew be chased by revenue for living rent free as the nephew will not be paying rent rather acting as a caretaker? This is where it gets very confusing as if revenue deemed that the nephew would be charged for living free rent they would look at the rental yield on house, the problem is the house is in bad disrepair which means it's not rentable, how would that circle be squared?

    If the house was in a good state, the rental yield would be very high however cost of full repair to property would be enormous, if nephew moved in that would mean just repairing three rooms and trying to keep costs low. Any thoughts on this situation, basically would nephew be charged for living rent free.

    If nephew going to be charged for living rent free then he will not move in as too much risk in terms of repair costs then also getting hit with an unknown tax bill with no real way of calculating that bill. House will then gather dust until sold.


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