Announcement Finance Bill makes huge changes to Dwelling House Relief for CAT

Discussion in 'Budget 2017' started by mcriot29, Nov 27, 2016.

  1. mtk

    mtk Frequent Poster

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    pity it wasnt just tightened to be just family home and up to x amount . say 500k
    Too many chancers i guess
     
  2. Gordon Gekko

    Gordon Gekko Frequent Poster

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    But it has been tightened up to be just the family home?

    If you live with the deceased and inherit the property, it's tax free.

    So the spinster sisters, unmarried couple, or carer still get the property tax free.
     
    mtk likes this.
  3. srase

    srase Frequent Poster

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    I think these type of properties can still be transferred tax free if they qualify as "heritage properties" http://www.revenue.ie/en/tax/cat/leaflets/cat8.html
     
  4. mtk

    mtk Frequent Poster

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    Thats fair enough in my view then !

    So its only regarding another house they must be dependent in some way to get it CAT free?
     
  5. mcriot29

    mcriot29 Frequent Poster

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    SUMMARY OF PROPOSED CHANGES
    • Severe curtailment of the broad and unrestrictive application under the current Section 86. Will effectively limit the relief to shared main residences and will prevent an individual simply acquiring a property and allowing another person to reside in the property and effectively pass that property over to that person after 3 years with no inheritance tax.
    • The clawback provisions under the current Section 86, which do not apply if the person is over 55, will be raised to 65.
    • Will essentially restrict the exemption to inheritances and not to gifts – save for those gifts to a dependant relative.
    • The dwelling will have to be occupied by both the disponer and beneficiary at the date of the inheritance save for reasons of infirmity.
     
  6. trasneoir

    trasneoir Frequent Poster

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    Let's imagine a law that delivers €100m of "hardship avoidance" at a cost of €1b.

    Without quibbling about whether my Strawman Act is "good" or "bad", can we agree that we should want "better"?
     
  7. Brendan Burgess

    Brendan Burgess Founder

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    Would anyone have the time and knowledge to do a summary of the new rules? I would like to separate that out from the ongoing debate about whether it is a good idea or not.

    Brendan
     
  8. T McGibney

    T McGibney Frequent Poster

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    I don't get your point. This particular tax relief never cost a billion.