CAT Dwelling House Exemption & CGT

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tomwal

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Hi all, looking for some advice regarding my sibling. We have both inherited my mother's house - he had lived there with her for the previous sevenyears. My understanding is that he would be entitled to the CAT dwelling house exemption - however we will be selling, so he will have to put the proceeds towards a new home within one year?

However my accountant has advised that he thinks the exemption may only apply to a sole inheritor -he is looking into this further for us? Any ideas here?
Also my brother thinks he may not have to pay the cgt on the gains from the sale - as he will have been living in the house from the date of inheritance and before then, and it is therefore his principal private residence? Again any ideas?

Of course, we are also getting our accountants advice, but he is taking his time a little bit. Thanks!
 
Without looking at it in detail, my sense is that your brother should be entitled to the relief, subject to satisfying the other conditions.

There shouldn't be any CGT. If it's worth €100 when inherited, and then sold for €100, the base cost is €100, so no CGT.
 
Hi, thanks for the quick reply. Regarding the value, it has increased since the inheritance and we will both be liable for about 7,000 in CGT - unless he's exempt that is?
 
Your brother is in receipt of an inheritance of a share in a dwelling house. This can be exempt if he meets the criteria is he has lived in it with a dependant person for 3 years and does not own another dwelling house. He has to live in it for a further 6 years or reinvest the proceeds in another dwelling house which is his main residence.

His gain on the property will be exempt from CGT under Principal Private Residence Relief.

Your base cost is the value at the date of the grant of probate which one would imagine is higher than the value at the date of death.
 
Thanks for the replies, hopefully our accountant comes back with the same information!
 
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