A taxation question around house

T

Tonyb1970

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Take this scenario, aunty has gone into nursing home, house is lying empty and concerned over vandalism etc,aunty will not return home, aunt wants nephew to move into house to look after it and doesn’t want it sold, nephew will have to spend approx 30000 to repair house before he moves in as it’s quite old, nephew has his own small apartment, nephew considering renting his own apartment and moving into the house, will the nephew be pursued by revenue for living in the aunties house without paying rent? Their is no mortgage on the property. Will has been made and house will be left to nephew.
 
Anything on this folks? Is it likely nephew would be pursued by revenue? Just to note the house is not in a position to be rented on private market ie would not meet regulations to rent no central heating etc even with spend of 30000 it still would not be market rent standard compliant, just wondering how this would be viewed from taxation purposes
 
IANAL

My take on this is that he's a caretaker in the Aunt's home, so there's no liability.
If he rents his apartment of course that is taxable in the usual way.
 
Technically an exposure may arise, but I would not envisage Revenue having much interest in what’s proposed.

In any event, there’s the €3k exemption plus the Group B threshold plus the value of being a caretaker for a substandard property to play with.
 
Is he not going to be liable for inheritance tax on the increased value of the house when it eventually passes to him. The threshold to a nephew is only 32500 euros. Do revenue make allowance for his investment in the property to make it habitable?
 
Professional advice should be sought. Loans could be used and this is probably a case where the Dwelling House Exemption can be made to work.
 
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