How does one prove Eligibility for Dwelling House Exemption

[Zachary]

Hi all

Wondering how does one prove to Revenue that they are eligible for Dwelling House Relief? Say person lived with relative for three years yet all bills etc where in relatives name, how could one prove to Revenue that they were living there also, are there certain documents that are a must before one could be considered for Dwelling Relief? Lot of info online about the criteria for this relief but not info on what documentation etc is required to satisfy eligibility

Thanks

 

[Gordon Gekko]

Firstly, it’s a self-assessment system, so you claim the exemption if it applies and then you can be queried/audited. Typically, with a DHE claim, this happens. Revenue look at two main areas; did you have another property which is easy enough to deal with and did you live there. How you prove that is how you’d prove it to anyone who might ask. Mobile bills, club memberships, voting, it should be pretty easy to demonstrate that one is living somewhere.

 

[fistophobia]

DHE is rarely claimed. I know a few people who got it, with some difficulty from Revenue.
I cant understand why they allow this loophole.
How about an offspring inheriting a 5.5M house in Blackrock tax-free?
Do you think its a fair exemption?

 

[Gordon Gekko]

Yes, now that’s it’s back to what was intended.

Two elderly sisters live together in a €1m house; one of them owns it and she dies; should the other one be forced to sell it.

Section 86 / the DHE simply facilitates tax-free inheritance of someone’s family home where they’re cohabiting with the deceased.

Fair enough in my view.

 

[Zachary]

DHE is rarely claimed. I know a few people who got it, with some difficulty from Revenue.
I cant understand why they allow this loophole.
How about an offspring inheriting a 5.5M house in Blackrock tax-free?
Do you think its a fair exemption?

I don’t understand why it would be rarely claimed if it’s applicable, is it that Revenue rarely give it? And yes I agree, it can be disproportionate such as with the price of a house you mention however my issue wouldn’t be whether the Exemption is fair rather if the inheritance tax rates charged in the first place are ‘’fair’’ which I don’t believe them to be, basically the government can charge huge tax rates on someones estate who has paid their tax over their lifetime, well....just because they can, I’d have more of an issue with that but that’s for a different thread.

 

[DirectDevil]

Yes, now that’s it’s back to what was intended.

Two elderly sisters live together in a €1m house; one of them owns it and she dies; should the other one be forced to sell it.

Section 86 / the DHE simply facilitates tax-free inheritance of someone’s family home where they’re cohabiting with the deceased.

Fair enough in my view.

Another similar scenario was the one where one parent died - usually the father first - and a daughter, in time, became the effective full time companion / carer for her mother. When mother died the daughter inheriting under the will frequently lacked financial ability to pay the relevant tax due on inheritance. In these cases the house had to be sold to pay the taxes and the daughter had to find a new home.