# Capital Acquisitions Tax and unmarried co-habitees



## Starbuck (5 Jan 2008)

I read recently that Charlie McCreevy's 1999 CAT concession to unmarried co-habitees on inheritance of their home, was abolished by Cowen in 2006.

Is this correct? The Revenue.ie site has no mention of it, yet it was in the Indo.


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## Nige (7 Jan 2008)

The dwelling house exemption for gifts (though not inheritances) no longer applies where the person gifting the house or an interest in that house also lives there, unless they required the person getting the gift to help them due to old age or infirmity. 

So, if a healthy, young co-habiting couple plan to place a property which was bought by one of them only, into joint names, a gift tax liability will arise.

However, if they don't put it into joint names, but the owner of the house dies and leaves the house to his or her partner, no tax will arise.


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## Starbuck (8 Jan 2008)

Hi Nige.
Thanks for your reply, but your interpretation is different to the opinion of TD John Deasy, who - in a Dail speech in response to the 2007 Budget - stated that Brian Cowen has abolished the relief altogether for co-habiting couples. 
Here is the full text of the speech (Mr.Moderator, I hope you don't mind this being posted here).




> *Deputy John Deasy: *
> *31 October 2007 *
> *Contribution to Dáil Éireann by John Deasy TD on the Civil Unions Bill, 2006*
> 
> ...


 
Here is the link: [broken link removed]


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## Nige (8 Jan 2008)

John Deasy is wrong. Section 116 of FA 2007 amended section 86 of the CAT Acts only in the case of gifts. The relief remains unchanged in the case of an inheritance.


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## Starbuck (8 Jan 2008)

I'm pleased to hear it, if thats so, but why then did the Revenue say 'there have been numerous complaints about this but that they can do nothing because the law is passed'?


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## Nige (8 Jan 2008)

Starbuck said:


> I'm pleased to hear it, if thats so, but why then did the Revenue say 'there have been numerous complaints about this but that they can do nothing because the law is passed'?


 
I wouldn't be sure they did. John Deasy said a solicitor told him - the solicitor may have been dealing with a case where a gift was made.


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