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Dwelling House relief

  • 04-09-2019 1:15pm
    #1
    taxdummy
    Registered Users, Registered Users 2 Posts: 52 ✭✭


    Hi All,

    Quick question for you - am I right in thinking that if you qualify for the Dwelling House relief exemption, that you then also have the €320k CAT threshold for any other cash assets that you may inherit in the same inheritance?

    Thanks


Comments

  • #2
    Daxve
    Registered Users, Registered Users 2 Posts: 164 ✭✭Daxve


    86(3) Subject to subsections (4), (5), (6) and (7), a dwelling-house comprised in a gift or inheritance which is taken by a donee or successor ...
    is exempt from tax in relation to that gift or inheritance, and the value of that dwelling-house is not to be taken into account in computing tax on any gift or inheritance taken by that person unless the exemption ceases to apply under subsection (6) or (7).

    As the value of the house is not taken into account in computing the tax due it does not use any of the relevant CAT threshold which can be used in full against any other inheritance


  • #3
    taxdummy
    Registered Users, Registered Users 2 Posts: 52 ✭✭taxdummy


    looking for a little more clarity on the above, suppose one qualifies for the dwelling house exemption, and indeed inherits the house.

    They have to live in the house for 6 years post inheritance for the exemption to apply, unless they need to work away from the area, or sell the house for similar priced property etc. I have three queries that I have been unable to get a clear answer on:

    1. It states that the house must remain your "only or main home", does this mean that it is possible to buy another property within the 6 years, but the inherited house must remain your PPR essentially?

    2. What if you decided for whatever reason that your want to move counties, but keep the house, do revenue pro rate the tax that would have been paid or do you have to pay for the full amount. For example suppose the tax billed would have 250k, but the you claim the dwelling house exemption, and 3 years in you choose the move counties, and buy a second property (and keep the inherited property), do you have to pay 125k? or the full 250k?
    As a follow up to this - would any tax be based on the valuation put on the property at time of inheritance?

    3. Revenue website gives examples that if you are sent to abroad for work, that the exemption still applies, i.e. if your employer sends you. What would happen if you leave your current job, and get a job in a different county - which is more voluntary?


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