CAT exemption for Dwelling House does not apply if the donor lives in the house!

Brendan Burgess

Brendan Burgess

Founder
Messages
54,974
Someone mentioned this to me today and I had not come across it before.

http://www.revenue.ie/en/tax/cat/leaflets/cat10.html
  1. Gifts taken on or after 20 February 2007: Any period during which a donee occupies a house that was during that period the disponer's only or main residence will be disregarded as a period of occupation in that house unless the disponer is compelled, by reason of old age or infirmity, to depend on the services of the donee for that period. Old age refers to a person aged 65 or over.
So, I can give a gift of an investment property to an unrelated person completely free of CAT, as long as I am not living in it myself.

However, if my son is living with me for 20 years in my house, this exemption does not apply (unless I am over 65).

I can't really figure the logic of this.

If two people are living together but not married and she owns the house and leaves it to him, he can't avail of this exemption.

Brendan
 
I agree it can lead to some harsh cases but it only applies in cases of a gift. This restriction does not apply in case of inheritances.
 
I guess it's to cover the gifting of the family home to children...as in actual children.

In the absence of that condition, I could gift our home tax free to my son (who is sitting right here).
 
You must log in or register to reply here.
Back
Top