Tax implications for recipient of Right of Residence in the family home.

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Charles135

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Hi,
Would anyone have information on the tax implications for a grandchild who receives Right of Residence, limited to a certain age, in the grandparent's family home.
Thanks.
 
Very roughly:-

Assumptions:

Property value - €400,000

Grandchild current age - 18

Right of residence until age - 25 (7 years)

Appropriate factor for a 7-yr year certain interest - 0.377*

Right of residence generally valued at - 10% (of the property value)

Benefit received from - grandparent (on death thereof)

Capital Acquisitions Tax (CAT) Group threshold - Group B (€32,500 - grandparent to grandchild)

Prior Group B benefits received - Nil

Workings:

Grandchild's 'slice' of property: €400,000 x 10% = €40,000

Taxable value for CAT: €40,000 x 0.377 = €15,080

Group B tax free threshold: €32,500

CAT payable = Nil


* TABLE B:

Capital Acquisitions Tax Consolidation Act 2003, Schedule 1

The electronic Irish Statute Book (eISB) comprises the Acts of the Oireachtas (Parliament), Statutory Instruments, Legislation Directory, Constitution and a limited number of pre-1922 Acts.
www.irishstatutebook.ie

Tax & Duty Manual - Rights of residence:
 
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