Changes were made to the dwelling house exemption in the 2016 budget.

Capital acquisitions tax, dwelling house. tax relief, dwelling house exemption

Section 52 of the Finance Act 2016 made changes to Section 86 of the Capital Acquisitions Tax Consolidation Act 2003 in respect to the dwelling house exemption.

With effect from 25th December 2016:

The dwelling house exemption will only available for inheritances.

  • A dependent relative being gifted a dwelling house is the only exception to the rule.
  • Dependent relative must be permanently physically or mentally incapacitated or over 65.
  • Inherited dwelling house must have been the deceased person’s principal private residence at the date of death.
  • If the deceased person leaves the house before death due to ill health, the requirement is relaxed.

Please contact us if you wish to review how these changes may affect your succession plans.