Key Post Dwelling House Exemption from CAT

[Brendan Burgess]

I haven't studied this much, so is the following a correct summary:

http://www.revenue.ie/en/tax/cat/leaflets/cat10.html

There are two separate reliefs:

A person can leave the house in which they live on their death to someone who has lived in that house for the previous three years, subject to certain conditions.

• It must be on death - it doesn't apply to gifts anymore.
  
• It can only be their family home - they can't leave a second home to anyone anymore.
  
• The person inheriting the house must have been living in it for the previous three years - same as before.
  
• The person inheriting the house must not own any other house at the date of death.
  
• The person inheriting the house must stay in it for the next 6 years

A person can gift any house to a dependent relative or to a relative over 65 years of age

• A dependent relative is a direct relative of the donor or of the donor’s spouse who is permanently and totally incapacitated because of physical or mental infirmity from maintaining himself/herself
• It does not need to be the family home of the person giving the gift

Do the following conditions apply to the gift:

• The person inheriting the house must have been living in it for the previous three years - same as before.
  
• The person inheriting the house must not own any other house at the date of death.
  
• The person inheriting the house must stay in it for the next 6 years

 

[srase]

Your summary is correct and the answer to your three questions is yes these three conditions remain:

• the person inheriting the house must occupy property as their only or main residence for 3 years (or 3 out of 4 years in case of replacement residence) immediately before inheritance
  
• the person inheriting the house must not have any interest in any other dwelling at date of inheritance
  
• potential 6 year clawback still applies. As before there are some exceptions to this clawback (e.g. move due to employment, old age, purchase replacement property etc.)