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Dwelling House Relief

  • 08-07-2022 10:14pm
    #1
    Registered Users, Registered Users 2 Posts: 52 ✭✭


    Guys looking for some input on the dwelling house relief/exemption. The revenue website is very clear on what conditions are to qualify and give many examples however there is one that I am trying to understand. Let's take the following example.

    Suppose you qualify for the exemption, and the property is worth say 1m, and if you didn't claim the exemption would have a tax bill of say 220k. You must keep this for 6 years and then you pay no tax. Revenue website talks about what happens if you are selling/dispose the asset within the 6 years, but what exactly happens if you say buy another property (as your main home) in that time frame. Would revenue claim back the exemption on a proportional basis, i.e. if you buy a property after 3 years, they will look for 220/2 = 110k, or is it the full 220k regardless of when you purchase another property? Following on from that if it's 220k, do they apply inflation/interest to that figure?

    I have asked two different financial planners and both said they've never seen it in practice and wouldn't be able to advise or give a definitive answer - although they did charge me to tell me that. Given the sums involved I would be looking to get a definite answer.

    Maybe someone here has seen this happen or would know a good tax advisor to go to - ideally not any joe soap - as when from experience they say they know until it gets specific.

    One other related note, one of the financial planners told me that if claimed the exemption, that I could then receive up to 335k tax free - is this correct, i.e the value of the house is ignore once the exemption is taken, and cash is treated as per the threshold levels?



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