inheritance tax for civil partnership

N

ninak

Registered User
Messages
131
I am looking for a bit of advice on filling out my will. Myself and my partner have been together 12 years and co-habiting for 9. We have a home together. The house is in my name as we inherited part of it from my mother and bought out the remainder. The mortgage is in both of our names. I am drawing up my will and am worried about leaving the house and my savings all to my partner if it will land him with a heavy inheritance tax bill. The property, although it has lost alot of value, is worth about 600,000.
Could I leave it to our 6 year old son and then my partner as his father?
My partner has said that there is some rule in place regarding civil partnerships where they have been together living in the property for over three years and that it is the only property they own. In this case, which we would fall in to, inheritance tax will not be an issue. I want to find out more about this.
I do not plan on dying anytime soon, but you never know. I would hate to think that my partner may have to sell our home in order to pay the inheritance tax.
Should I just book a registry office to sort this out? Any advice welcome.
 
The civil partnership bill has not been passed into law yet and even when it is, the Finance Act will also be changed the amend the meaning of the term "spouse"

The "rule" regarding civil parthers that you mentioned is called Dwelling House relief and this applies to everyone not just civil partners. It provides that where a person receives a gift/inheritance of a dwelling house that has been their main residence for a continuous period of 3 years, then the gift/inheritance is exempt for CAT.
 
"Exemption relating to certain dwellings
For gifts and inheritances of certain dwellings taken on or after 1 December 1999, Capital Acquisitions Tax will no longer apply provided:
• the recipient has been living in the house as his/her only or main residence for the 3 years prior to the transfer
• the recipient does not have an interest in any other house
• the recipient continues to live in the house for at least 6 years after the transfer
4"

The restrictions on the relief are important.

Get thee hence to a Registry Office would be my advice.

mf
 
In your partner's case she could avail up to €21,700 threshold
In your son's case you could avail up to €434,000


A dwelling house taken as a gift or inheritance is exempt in certain circumstances as you have already mentioned. But the main problem here would be that you are not married.

See [broken link removed]
 
Thanks for the replies. The dwelling house relief does seem to cover us on this. The restrictions mentioned would not be a problem. Just as long as they don't cap it or something like that. I won't have to rush out and buy a wedding dress just yet!
 
You must log in or register to reply here.
Back
Top