FROM REVENUE WEBSITE
GIFT/INHERITANCE CAT 10
TAX EXEMPTION FOR DWELLING-HOUSE
INTRODUCTION
Section 151 of the Finance Act 2000 inserts a new section 59C into the
Capital Acquisitions Tax Act, 1976. It provides that gifts or inheritances of a
dwelling-house taken on or after 1 December, 1999 will be exempt from
capital acquisitions tax provided the following conditions are complied with-
(a) the recipient must have occupied the dwelling-house continuously as
his or her only or main residence for a period of 3 years prior to the
date of the gift or inheritance.Where the dwelling-house has directly or
indirectly replaced other property, this condition may be satsfied where
the recipient has continuously occupied both properties as his or her
only or main residence for a total period of 3 out of the 4 years
immediately prior to the date of the gift or inheritance;
(b) the recipient must not, at the date of the gift or inheritance, be
beneficially entitled to any other dwelling-house or to any interest in
any other dwelling-house, and
(c) the recipient must continue, except where such recipient was aged 55
years at the date of the gift or inheritance or has died, to occupy that
dwelling-house as his or her only or main residence for a period of
6 years commencing on the date of the gift or inheritance. Where the
dwelling-house is directly or indirectly replaced by other property, this
condition may be satisfied where the recipient continuously occupied
both properties as his or her only or main residence for a total period of
6 out of the 7 years commencing on the date of the gift or inheritance.
A recipient absent during any time through working abroad is
considered to remain in continuous occupation of that dwelling-house.
The exemption will not be withdrawn where a breach of the condition
referred to at (c) above is as a result of the recipient requiring long term
medical care in a hospital, nursing home or convalescent home or as a
result of a condition being imposed by an employer on a recipient to reside
elsewhere.
mf